China’s stock market regulator has given its approval to CNFC Overseas Fishing to move forward with a non-public listing.
Beijing-based CNFC announced in December 2021 it hoped to raise CNY 400 million (USD 65 million, EUR 56 million) in a private listing from 35 investors. Of the total raised, the firm will spend CNY 132 million (USD 21.1 million, EUR 18.4 million) on new vessels.
State-owned CNFC will be hoping that investors overlook the fact the firm has struggled to show profitability. The firm lost CNY 85.8 million (USD 13.7 million, EUR 12 million) in 2021, though its revenue of CNY 462 million (USD 73.9 million, EUR 64.6 million) was up 3.8 percent year-on-year. Additionally, CNFC appeared in a 2021 Planet Tracker report naming fishing companies listed on global stock markets with vessels that regional fishery management organizations have associated with illegal, unreported, and unregulated fishing
Nonetheless, CNFC’s share price soared to CNY 8.68 (USD 1.68, EUR 1.21) on 29 March, rising 10 percent on a day’s trading as investors latched onto so-called concept stocks – shares of companies associated with concepts like aquaculture, ready meals, and community shopping programs or apps. These shares have been doing particularly well in recent trading.
Image courtesy of CNFC
