Nova Consumer will offer 10.9 million shares to the public for the first time, with a minimum price of VND43,462/share.

SSI Securities assesses that Nova Consumer's business sector has many prospects in the coming time.

Nova Consumer Group Joint Stock Company (Nova Consumer) has just announced an initial public offering (IPO) of 10.9 million shares, equivalent to 10% of capital. The minimum offering price is VND43,462/share, raising about VND474 billion for the purpose of enhancing financial capacity to develop the food chain and supplement working capital.

Specifically, the company will use VND 430 billion to buy back the capital contribution of Consumer Investment Joint Stock Company at Rising Sun Food Company Limited to develop the food chain, VND 35 billion to contribute new capital to Rising Sun Food Company Limited and the rest to supplement working capital.

The minimum registered purchase quantity of an investor is 1,000 shares, the volume step is 1,000 units and the maximum purchase volume for an investor is 5,444,000 shares. The distribution agent is SSI Securities Corporation (HoSE: SSI). The deposit amount is 10% of the total value of the purchased shares calculated according to the Minimum Offering Price. The time for registering to buy and paying the deposit is from February 7 to February 28. The expected time to announce the results of the share purchase is March 4, 2022.

After completing the initial public offering, Nova Consumer will carry out procedures to list on HoSE, expected in the second quarter of 2022.

Nova Consumer is a member of Nova Group - Vietnam's leading private corporation with 8 corporations, including 3 pillar corporations including Novaland (HoSE: NVL), Nova Service and Nova Consumer. Nova Consumer is a unit operating in the field of agriculture, manufacturing and distributing consumer goods, serving the essential needs of life.

The company specializes in providing optimal and comprehensive solutions for livestock farmers including veterinary medicine, vaccines, animal feed, breeding animals and high-tech livestock solutions. In addition, from 2020, the group plans to expand into the field of food production and distribution to close the value chain from farm to table (3F model, Feed - Farm - Food).

Nova Consumer has 11 subsidiaries (direct and indirect) and 3 affiliated companies operating in the agricultural sector, including 2 companies in the vaccine sector and 4 companies specializing in animal health with 2 veterinary medicine factories invested in modern equipment, automatic production lines and meeting WHO-GMP standards. In the animal feed sector, the enterprise has 3 factories with a total capacity of 730,000 tons per year. The company also has 7 pig, cow and chicken farms in many provinces in Vietnam.

Anova Feed factory in Long An meets Global G.A.P

SSI Securities assesses that Nova Consumer's field of operation has many prospects in the coming time. Compared to countries in the region, the level of meat consumption per capita in Vietnam is still low, about 16.5 kg/person/year compared to the highest country in the region at 57.5 kg/person/year. Vietnam is a populous country with a young population structure and an increasing average income, which will contribute to increased meat consumption. Thanks to a closed agricultural production chain and the ability to trace the origin, Nova Consumer has a lot of room to strongly develop the market in this field.

In addition, Vietnam still has a small-scale livestock farming structure, so the use of veterinary drugs and biosafety measures has not been properly and thoroughly applied. With the trend of centralizing livestock farming to increase production and reduce epidemics, it will contribute to raising awareness of the use of vaccines, veterinary drugs, solutions used in biosafety measures, including animal feed, which will contribute significantly to the growth rate of the industry.

Production line of veterinary and aquatic medicine products meeting WHO-GMP standards at Anova Pharma - a member of Nova Consumer

According to Phu Hung Securities (PHS), spending on food and beverages accounts for the highest proportion in the monthly spending structure of consumers (about 35% of total expenses). Vietnam is estimated to have about 17 million middle-class households in Vietnam by 2030 and is expected to become the 3rd largest market in terms of the number of consumers and the 5th largest in terms of total spending in Southeast Asia by 2030. Therefore, in the future, Vietnam will witness strong growth in the F&B industry. The average annual growth rate of food spending in the period 2020-2024 is about 11.3%.

According to Statista, the total value of food and beverage consumption in Vietnam in 2021 is estimated at VND 816,000 billion, up 10.5%; in 2022, it is forecast to reach VND 902,000 billion, up 11%.