Žito Grupa recently announced a new investment cycle that confirms its long-term strategy focused on sustainable growth, innovation, and strengthening domestic agricultural production. The Group also announced its intention for an initial public offering of shares (IPO) and targeted listing of shares on the regulated market of the Zagreb Stock Exchange.
Žito Grupa is a leading agricultural-food group in Slavonia, whose operations include 4 key activities: crop production, livestock farming, industry, and trade with cooperatives. The business model is based on the principles of vertical integration, which connects production processes and ensures traceability, i.e., monitoring and controlling the entire production to ensure high quality of finished products.
The Group manages a total of 17,800 hectares of arable land, making it one of the largest agricultural land processors in Croatia. It purchases crops from an additional 60,000 hectares, which are cultivated by 3,000 cooperatives. In the domestic market, the Group is the largest egg producer, a leader in oilseed processing, and the second-largest pig producer. The company has around 1,200 employees.
– Since its establishment, Žito Grupa has been continuously growing. Today, we are among the largest Croatian companies creating conditions for growth and development of the entire region and the return of young people to Slavonia. We are proud of our 1,200 employees, and we have further ambitious plans ahead. By entering the IPO, we want to continue growing and offer investors the opportunity to become our partners on that journey – said Marko Pipunić, CEO.
In 2024, Žito Grupa achieved revenues of EUR 335 million, with a record normalized EBITDA level of EUR 66.3 million. The Group achieved an EBITDA margin of 19.8 percent in 2024. In addition to Croatia, one-third of revenues were generated in foreign markets (Hungary, Italy, Serbia, Slovakia, Kosovo, Germany, Austria).
– Among the greatest strengths of Žito Grupa is its business model based on the principles of vertical integration, which allows for monitoring and controlling the entire production to ensure high quality of finished products. Vertical integration means traceability from field to table, through which Žito Grupa creates a complete food picture of the region – said Josip Bičvić, a member of the Management Board responsible for industry and trading activities.
Jozo Ljubičić, CFO, added that the Group has invested more than EUR 200 million in the last nine years and plans to invest an additional EUR 105 million in the new investment cycle.
– Investments are directed towards the organic development of existing business segments with the aim of expanding capacity, improving efficiency, and reducing operating costs. We also plan to make strides for further growth through acquisitions – said Ljubičić, while Mato Božić, a member of the Management Board responsible for agricultural activities, emphasized that the Group is poised for further advancements in the use of artificial intelligence and the latest technologies.
Key Information about the IPO
Žito Grupa is considering an initial public offering that would include three key elements: the issuance of new shares of the company (so-called New Shares), the sale of existing treasury shares (Treasury Shares), and the sale of a portion of shares currently owned by majority shareholders (Shares for Sale).
According to the planned structure, new and treasury shares would together account for about 80 percent of the total number of shares offered as part of the IPO. The funds raised from their placement would be used for the further development of the Group’s business, and specific details about the investment plans will be published in the subsequent documentation.
After the public offering is conducted, investors participating in the IPO would hold at least 25 percent plus one share in the ownership structure of the parent company. The offering is envisioned as a single round to be conducted in the Republic of Croatia and would be open to all categories of investors – including employees of Žito Grupa, small investors, and qualified investors.
Regarding the restrictions on the sale of shares after the IPO, a lock-up period of six months is planned for members of the Management Board and the Supervisory Board, and twelve months for the shareholders and the Company itself, in order to ensure market stability and investor confidence in the initial months of trading.
More detailed information about the public offering itself will be available after the Croatian Financial Services Supervisory Agency (HANFA) approves the prospectus. Accordingly, the final structure and terms of the offering will be published shortly before its launch, and their content will depend on regulatory approvals and market conditions.
According to the expected schedule, the prospectus for the public offering and the listing of shares is expected to be published in June 2025, after which the timeline of activities and the public call for subscription of shares will follow, including the range of the IPO price per share. The subscription period as part of the offering is planned for June and July 2025.
