Sistranda, Norway-headquartered Frøy ASA has announced its intention to launch an initial public offering (IPO) of its shares and to apply for a listing on the Oslo Stock Exchange.
The salmon-farming services provider, which was created through the April 2020 merger between Frøy Gruppen AS (and subsidiaries) and one of NTS ASA’s subsidiaries, said net proceeds from the IPO will be used to establish a sustainable long-term financial platform, to pursue growth opportunities, and for organizational development and general corporate purposes.
According to press release, the group’s vision is to take advantage of the rapidly growing aquaculture industry by being the preferred provider of efficient and sustainable aquaculture services to salmon farmers. It stated that Frøy’s board of directors is of the opinion that the offering and share listing will enable the group to take a more active role in developing and realizing its growth potential. Additionally, the move will support the company’s ambitions to expand the scale and scope of its Norwegian client-base through existing and new client relationships, and allow for the potential expansion into other salmon-farming regions.
“Over the last 20 years, Frøy has developed into a market leading aqua service provider to the Norwegian salmon farming industry. Going forward, we see several paths for continued growth for Frøy, and believe an IPO of Frøy is now a natural next step to enable the next phase of the company´s development,” Frøy CEO Helge Gåsø said. “We see continued strong demand for servicing the aquaculture site infrastructure and biomass, and look forward to continuing our hard work to meet the needs of our customers. With the backing of NTS ASA as a long-term owner, I trust we will continue to be the integrated solutions partner of choice for the fast-growing aquaculture industry.”
Frøy expects that the offering of new shares in the group will raise gross proceeds of approximately NOK 1 billion (USD 117.1 million, EUR 98.3 million). The offering is also expected to include a sale of shares by existing shareholder NTS ASA.
Subject to receiving the relevant approvals from the Oslo Stock Exchange and the Norwegian Financial Supervisory Authority, as well as prevailing equity capital market conditions, the group is expected to have its first day of trading on the Oslo Stock Exchange in the first quarter of this year.
Danske Bank, Norwegian branch, Nordea Bank Abp, filial i Norge, and SpareBank 1 Markets are acting as joint global coordinators and joint bookrunners in the offering.
Frøy’s service offering includes the installation and maintenance of salmon farming sites, biological treatments, and the transportation of live fish.
Photo courtesy of Frøy ASA
