Nuchev Limited (NUC)
Wilsons Advisory acted as Sole Lead Manager and Underwriter to Nuchev Limited’s (NUC:ASX) recent entitlement offer and institutional placement to raise $15.2m.
Nuchevs have disrupted the infant formula market with their pioneering use of goat milk, delivering a market opportunity which has both a global outlook and reach.
Nuchev develops, manufactures and distributes premium goat milk infant formula under the Oli6® brand across multiple sales channels in Australia, China and Hong Kong. The company was founded in 2013 when the domestic goat milk infant formula (GIF) market was worth $3 million. Now the category is valued at more than $105 million annually. Nuchev is specifically focused on targeting the Chinese market where there is already heightened demand and a strong existing consumer base for infant formula. CEO Ben Dingle described the Chinese market as “not just one market, [but] a multi-market with multiple dimensions".
Their Oli6 formula range initially targeted the pharmacy channel with Chemist Warehouse but quickly expanded into a multimillion-dollar distribution deal with Coles in June 2019. Nuchev is set to expand its horizons following its recent successful capital raising with Wilsons Advisory, which will allow them to further invest in growth opportunities and potential strategic partnerships, particularly in the cross-border e-commerce channel into China. The CEO stated, “Goat milk appeals, it is premium and the health benefits that mothers are seeing in our Oli6 goat infant formula is very appealing, so that underpins our strong sales growth”.
Richard Sherman, Head of Corporate Finance Origination, said “it has been pleasing to see strong investor support for Nuchev as they expand their business, and we look forward to the company’s continued success”. The high quality of their management team and premium product, as well as their scalability and potential to grow significantly in the next five years, sets Nuchev apart from its competitors.
For more information contact:
Head of Corporate Finance, Rob Snow
rob.snow@wilsonsadvisory.com.au
/ (02) 8247 6645;
Head of Corporate Finance Origination, Richard Sherman - richard.sherman@wilsonsadvisory.com.au
/ (03) 9640 3879
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