Following a successful bookbuild process, New Zealand King Salmon has lodged its Product Disclosure Statement (PDS) for an initial public offer (IPO) of 69.2 million ordinary shares.
The company is seeking NZD 30 million (USD 21.7 million, EUR 19.4 million) in new capital to repay debt, to fund future investment and for working capital.
As part of the IPO, existing investor Direct Capital is selling up to NZD 45 million (USD 32.6 million, EUR 29.1 million) of shares in the offer.
Major shareholder Oregon Group is reducing its shareholding to approximately 40 percent, selling down NZD 800,000 (USD 579,400, EUR 517,938) of shares in the offer, while other existing minority shareholders are selling up to NZD 1.7 million (USD 1.2 million, EUR 1.1 million) of shares in aggregate.
New Zealand King Salmon intends to list on both the NZX Main Board and the Australian Securities Exchange (ASX) next month.
Based on the NZD 1.12 (USD 0.81, EUR 0.73) price per share, the company’s market capitalization will be NZD 154.5 million (USD 112 million, EUR 100 million), assuming the offer is fully subscribed and excluding certain shares to be offered under an employee share ownership plan.
Company chairman John Ryder said the offer has received strong support from investors.
"Naturally we are delighted New Zealand investors have demonstrated strong support for the initial public offering with demand exceeding the size of the offer at the final share price,” he said. “The confirmed continuing involvement of major shareholders Oregon Group and others reflects their ongoing support for New Zealand King Salmon and their desire to remain invested in the company alongside new investors.”
Ryder said shares have been allocated to institutions in New Zealand, Australia and Hong Kong, local Marlborough and Nelson Bays iwi, as well as a number of brokers on behalf of their New Zealand resident clients. A priority offer of NZD 1.5 million (USD 1.1 million, EUR 970,976) of shares is available to eligible residents in the Marlborough and Nelson Bays regions.
New Zealand King Salmon operates under three key brands: Ora King, Regal and Southern Ocean. The company controls all elements of the value chain from breeding and growing to harvesting and processing, and has been selling salmon to consumers and chefs for more than 30 years.
It owns and operates eight seafarms in the Marlborough Sounds, harvesting and processing more than 6,000 metric tons of king salmon per year.
Three new seafarms consented in 2014 are expected to enable the company to approximately double annual production over time.
In respect of the financial year to 30 June 2017, New Zealand King Salmon is forecast to generate revenues of NZD 130.1 million (USD 94.3 million, EUR 84.2 million) and pro forma operating earnings before interest, taxes, depreciation, and amortization (EBITDA) of NZD 19.2 million (USD 13.9 million, EUR 12.4 million).
New Zealand King Salmon is expecting to declare dividends of NZD 5 million (USD 3.6 million, EUR 3.2 million) for the 2017 financial year, 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.
