Jerónimo Martins SGPS, S.A.

Founded in 1792, Jerónimo Martins is a Portugal-based international Group operating in the Food Distribution (98% of global sales) and Specialised Retail sectors. The Group currently concentrates its main operations in three countries: Portugal, Poland and Colombia.

Capital Markets

1989

IPO

Jerónimo Martins was listed on the Lisbon Stock Exchange on November 1989. A few months before, an IPO of 15% of the Company’s Capital Stock was held at an announced share price of €16.5.

30 years upon THE IPO

Capital increases and follow-on offerings

Jerónimo Martins has made intensive use of the capital markets, having carried out 19 share capital increases over the 30 years upon its IPO, especially during the 1st phases of expansion in Portugal and of internationalization, reaching a free float of around 30% (44% by 2021 year-end).

Main reasons for admission to the stock exchange

  • Allow the diversification of the financing sources and decrease the reliance on bank borrowing
  • Allow to start mapping a strategy for international expansion that was to bear fruit in the move into the Polish market (which has been the Group’s largest geography and the principal driving force for growth and profitability)
  • Made possible the series of acquisitions and process of organic growth through which gradually built the Group’s leadership position in the Food Retail sector in Portugal
  • Admission to the stock exchange required a commitment to transparency and respect, increased discipline and a culture of dialogue and accountability to all stakeholders

“The rapid growth in the economy offered room for growth if companies had the courage to believe that the new financial instruments, then emerging, could be crucial in paving the way for the heavy investment that such a course would require. It was possible to anticipate that stock and bond issues would provide a path forward for businesses, such as Jerónimo Martins, averse to an over-reliance on bank borrowing.”

Pedro Soares dos Santos – Jerónimo Martins’ Chairman and CEO

Listing on the Stock Exchange, enabled Jerónimo Martins to grow locally and expand internationally, creating value that was shared to all its investors. Although Jerónimo Martins is listed on the Stock Exchange, the Group remained controlled by a family holding Company, which provided the stability that allowed management to stay focused on the long term and to keep family values central to decisions.

Source: Jerónimo Martins, Jornal de Negócios

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