Q: AGT Food and Ingredients was bought by FFH back in 2019, but has now announced it's intention to do an IPO. Why would FFH decide to let this go public just as relations with India seem to be thawing, opening up a huge market for AGT?
5i Research Answer:
The 'thawing' could actually be a driver for the reasons behind FFH's decision. Note that most of the IPO will be treasury shares, and FFH is only planning on selling a small portion. Thus, if shares do well, FFH will still benefit handily. It is in the business of making money, and has owned the company for seven years and likely feels the timing is good.