The Convenience Shop (Holding) plc has recently announced that the Malta Financial Services Authority has authorised the admissibility to listing on the Official List of the Malta Stock Exchange  of 7.7 million shares, at an offer price of €0.97 per share.

The offer period is valid from 1st February 2023 (today) until 10th March 2023. A copy of the prospectus relating to the said Offer can be downloaded here or obtained from Authorised Financial Intermediaries listed in the prospectus.

The Convenience Shop Group traces its origins to 2009, when the first outlet was opened in Zebbug under The Convenience Shop brand. Since then, the Group has established itself as Malta’s largest network of grocery stores, with 83 outlets strategically spread across 48 localities in Malta and a head count of 750 employees.

In addition to its store network strategy, the Group’s management says it is constantly seeking to improve its product offering and customer experience.

The Group has developed a strong relationship with its over 140 suppliers and presently offers a selection of more than 2,000 different brands.

“The extended opening hours, wide variety of products, and increased presence in various localities continue to make The Convenience Shop stores an attractive shopping destination for the purchase of household goods, with a footfall which in 2022 exceeded 11.2 million,” a company spokesperson said.

This represents a 14 per cent increase compared to the footfall recorded in 2021. The Convenience Shop total store network revenue increased from €59.7 million in FY 2020 to €63.3 million in FY 2021, and is projected to reach the €74 million mark in 2022.

“The Convenience Shop Group embraces a philosophy which places a strong emphasis on corporate and social responsibility through financial and other support to various NGOs and vulnerable people.” One of the first initiatives in this regard was the opening of ‘The Convenience Shop for Puttinu Cares’ outlet in Qormi in 2019, which operates for the sole benefit of the Puttinu Cares Foundation.

Public Listing

Of the 7.7 million shares on offer, one million are new shares issued by the company while the remaining 6.7 million will be offered for sale by the selling shareholders.

Although nominally priced at €0.97 per share, employees and franchisees of the group as at 27th January 2023 will have the opportunity to subscribe for up to 1,052,631 shares at a price of €0.945 per share.

Additionally, specific discounts will be granted to applicants subscribing for sizeable amounts as follows:

• Investment Amount of between €150,000 and €499,999: €0.957 per share

• Investment Amount of between €500,000 and €1,000,000: €0.945 per share

• Investment Amount of €1,000,000 or over: €0.915 per share

The net proceeds from the New Shares Offer, expected to amount to up to €970,000 will be used for the general corporate funding purposes of the group.

The sale of shares by the selling shareholders represents a partial realisation of their investment in the Company.

The Board of Directors intends to distribute 55 per cent of the recurring free cash flow on an annual basis, subject to statutory requirements and availability of profits.

The net dividend yield is projected to increase from five per cent in 2023 to 5.8 per cent in 2025, based on the IPO price of €0.97 per share.

The minimum subscription amount stands at 2,000 shares (equivalent to €1,940) and in multiples of 100 shares thereafter.