Purcari Wineries plans to float on BVB this Q1

Purcari Wineries announced today its intention to launch an initial public offering (IPO) of up to 49 percent of existing ordinary shares and subsequently float on the Bucharest Stock Exchange (BVB). Purcari is run by Victor Bostan, backed by Horizon Capital and International Finance Corporation (IFC), part of the World Bank Group.

“We have celebrated 190 years since the foundation of Purcari last year. I’m very proud, but also humbled, to lead our company and our team into this new phase, as a public corporation,” Victor Bostan, Founder and CEO of Purcari, said.

The IPO is expected to be completed in Q1 2018.

The wine producer operates over 1,000 hectares of vineyards and four production platforms, in Romania and Rep. of Moldova, scoring as the most awarded CEE winery at Decanter London in 2015-2016. Purcari owns two of the top-5 premium brands in Romania, for a combined 26 percent segment share, according to Nielsen. According to Bostan, there are still about six litres of beer and spirits consumed in Romania for every litre of wine, while in Poland the ratio is 18 to one.

Purcari has grown revenues at a 34 percent CAGR in 2014-2016, with CAGR in Romania at 55 percent, Poland 49 percent, Moldova 44 percent, Czech Republic and Slovakia 15 percent.

”We have been privileged to back Mr. Bostan and his team since 2010. The IPO is an opportunity for Horizon Capital to achieve partial liquidity on this investment, to the delight of our LPs, while maintaining a large stake in the company going forward and sharing in the future upside,” Lenna Koszarny, Founding Partner and CEO of Horizon Capital also stated.

In the first nine months of 2017, the company grew sales 35 percent year-on-year, growth in Romania accelerating to 69 percent versus the same period in 2016.

Purcari Wineries recorded an EBITDA margin for 9 mo of 33 percent last year, while the net income margin rose to 23 percent, expanding 29 percent and 55 percent, respectively, versus the same period in 2016.