New Zealand King Salmon confirms IPO intention

Published on
August 29, 2016

New Zealand King Salmon has confirmed its intention to undertake an initial public offering (IPO) of shares in New Zealand and a listing on the NZX Main Board and ASX with the proceeds of the offer being used to repay debt, fund future investment and working capital, and to also enable investor to realize some or all of their investment.

Current majority shareholder Oregon Group first invested in New Zealand King Salmon 20 years ago. Together with existing shareholders, including current and former members of the senior leadership team and directors, Oregon Group will retain a significant stake in the company following the offer.

“The continuing involvement of major shareholders Oregon Group and others reflects their ongoing support for New Zealand King Salmon and desire to remain invested in the company alongside new investors,” said John Ryder, chairman of New Zealand King Salmon. “The company has a well-established domestic market presence and share, and a history of successfully selling our products in offshore markets including North America, Australia, Japan and other parts of Asia, and Europe and other countries.

“By investing in New Zealand King Salmon, Kiwis will have the opportunity to share in our future as we continue to expand to satisfy growing international demand. My fellow directors and I are confident that New Zealand King Salmon’s senior executive team has the sector knowledge and expertise to continue to deliver for its shareholders," Ryder continued.

New Zealand King Salmon is the world’s largest aquaculture producer of king salmon and operates under three key brands: Ora King, Regal and Southern Ocean and has been growing and selling salmon to consumers and chefs for more than 30 years.

It owns and operates eight sea farms in the Marlborough Sounds, including three new farms consented in 2014 with a 35-year term. Over time, the new sea farms are expected to enable the company to approximately double annual production from the current 6,000 metric tons.

In the financial year to 30 June 2016, New Zealand King Salmon generated revenues of NZD 114.1 million (USD 82.6 million, EUR 73.9 million) and pro forma operating EBITDA of NZD 16 million (USD 11.6 million, EUR 10.4 million).

In respect of the 2017 financial year, New Zealand King Salmon is expecting to declare dividends of NZD 5 million (USD 3.6 million, EUR 3.2 million), or 50 percent of forecast pro forma operating net profit after tax, and NZD 5.6 million (USD 4.1 million, EUR 3.6 million) in 2018. It anticipates dividends will be fully imputed.

Contributing Editor reporting from London, UK

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