Bounty Agro Ventures exploring P27-B IPO in late 2023
Bloomberg is reporting that Bounty Agro Ventures (BAV) [link], the sister company to Bounty Fresh Foods (BFF), is considering an IPO worth between P22 billion and P27 billion, and that the IPO could happen in Q4 of this year.
BAV, owned by Tennyson Chen, started in 1997 as an egg producer, but has grown significantly since then to become the country’s largest rotisserie chicken producer.
According to its website, BAV sells over 100,000 roasted chickens per day, and operates a growing list of restaurants (Chooks-to-Go, Uling Roasters, Reyal Litson Manok, Adobo Connection, and HeiHei) that it uses to distribute these products to the public.
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This one is interesting, because it looks like it would give investors a chance to place bets on the entire poultry value chain.
Not only do you have the wholesale operations of chicken sales to supermarkets, grocery stores, and other traditional points of sale, but you’ve got the added wrinkle of owning Chooks-to-Go and other restaurants as part of the same deal.
Ok, that said, there’s a lot that can (and will) happen between now and whatever deal could actually make it to market.
We’ve seen how skittish companies can be with the market; when valuations start to compress, that’s when we start to get all the IPO “deferral” stories.
Assuming this does go to market, the size contemplated is actually rather large. It’s not a titan like Monde Nissin [MONDE 12.72 3.3%], but it’s a beast.
Whether it’s a beast of an opportunity remains to be seen.
I think BAV is a good company that is well-positioned for future growth, but will the price be attractive?
I want to see that prospectus! Until then, I can only speculate at the ticker symbol.
BAVI works because it’s catchy, but it’s too boring. BNTY might be a good choice, but wouldn’t it be hilarious for them to list with some ticker like CHIKN? That would be my vote!
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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