The announcement of Tropigália’s Public Subscription Offer (OPS), launched this Monday, 10th of October, is a milestone in the growth of the fast moving consumer goods distribution company.
Adolfo Correia, founder and CEO of the company, started by speaking of “pride”, recalled Tropigália’s path and shared some data about the company. “We were born in 2004, we are the 42nd largest Mozambican company, we have full implementation in the national territory, 12 logistics centres, we have audited accounts, over 700 employees, we represent 15 industries, exclusive products, over three thousand product references, 12 thousand clients, an annual turnover of almost 50 million dollars and a share capital of 8.5 million dollars.
“Today, 18 years after the birth of the company, we have the same profile, in essence: quality, continuity and excellence of products and services, wanting to be a reference in the region. Then, we also have our own brands. Among them, we have Gourmet, registered word as our brand, Tropigália’s leading food brand, with more than 200 references in the market”.
“Tropigália’s vision is, in the future, and with the entry into the Stock Exchange, to boost the construction and development of state-of-the-art logistics units throughout the country (Bilene, Maxixe, Quelimane, Tete, Nampula and Beira).”
Pedro Noronha, CEO of Banco BIG Mozambique, the institution responsible for the global coordination of the bank’s stock market entry operation, pointed out why, in his opinion, it makes sense to invest in Tropigália: “For its unique capacity, number of clients, for reaching millions of Mozambicans with its thousands of products through a fleet of 150 vehicles. All its growth has been achieved without recourse to bank loans. The company has a very solid balance sheet, financed by its own funds.”
“This is an extremely important operation considering that it takes place in this public offering format and is the first after the covid-19 pandemic, which sends a very strong signal considering the strength and robustness of the company”
Noronha also pointed out, before the audience that attended the launch of OPS, that the combination of all these factors “allowed the company to have a very strong track record that was evidenced in the last five years, the worst worldwide and in Mozambique, with the pandemic, but that, for Tropigália, was registered in a great growth, having gained market share and business in a particularly difficult time”, pointed out the CEO of Banco BIG.
“With all this, we can say that Tropigália is the right company to invest in, and if we look at the forecasts for the next few years, private consumption is expected to double in the medium term, which represents a huge opportunity. It is very rare to find Mozambican companies with audited accounts for 18 years and that respect all governance policies and good practices”, added Pedro Noronha.
“Tropigália’s vision passes, in the future, and with the entry into the Stock Exchange, by boosting the construction and development of state-of-the-art logistics units throughout the country (Bilene, Maxixe, Quelimane, Tete, Nampula and Beira).”
“This operation is a dream of Adolfo Correia and it has everything to go well: it will diversify the sources of financing, in addition to the fact that this entire ambitious expansion plan will allow him to be able to gather all the opportunities that the market offers.” Finally, the details of the operation: “it will be a capital increase, with the issue of three million nominative preferred shares.”
The operation is aimed at all Mozambican or foreign investors, resident or non-resident, and is structured in two segments: A for Tropigália workers and young people up to 30 years old; and B for the general public. The minimum lot for subscription is 50 shares, and the initial transaction price per share will be 100 meticais for segment A and 120 meticais for segment B.
The subscription period will run until the 4th of November. The syndicate that will help place the operation is led by BIG Bank, in partnership with Absa, FNB and Standard Bank.
Speaking to DE during the event held by Tropigália, the PCA of the Mozambique Stock Exchange (BVM), Salim Valá, reacted by stating that “this is an extremely important operation taking into account that it happens in this format of public offering and is the first after the covid-19 pandemic, which sends a very strong signal, taking into account the strength and robustness of the company that is now admitted, the good governance and the fact that it is the first completely private company to undertake a public offering,” he noted.
“We have been working for some years with Tropigália and we are very pleased and prepared to be able to organise everything according to the deadlines that have been defined. The Mozambique Stock Exchange will make this operation operational within the standards that are its hallmark – integrity, transparency and good management”, emphasized Valá.
Tropigália is now one of the 12 companies listed in the BVM.