Los Ángeles, Chile-based Salmones Austral’s board of directors has decided to push back its plans for an initial public offering (IPO) in the Chilean market.
The firm received approval from the country’s financial market regulator, CMF, to register the company and its shares in the securities register – the last regulatory step needed before listing on the stock exchange and launching an IPO – in May 2020. However, Salmones Austral says it would be unable to meet legal deadlines to open to the bourse by October.
At the time the IPO process was initiated, the company's expected proceeds were to be destined to fund Salmones Austral’s USD 100 million (EUR 98.6 million) 2020-2023 strategic investment plan, which aimed to bolster growth and increase productive efficiencies – including the construction of a new fish farm, an expansion its organic salmon-farming operation, and facilities improvements in its processing plants and farming centers designed to improve the company's production efficiency.
Salmones Austral President Christian Samsing said he now expects to start the IPO process over again with the CMF in 2023.
"Since it is not possible to extend the period to materialize the public offering, we have opted to voluntarily delist from the CMF registry,” he said. “This is transitory, because the company maintains its plans to go public in 2023."
The board also decided to cancel the USD 47.7 million (EUR 47 million) capital increase that had been approved at the firm's October 2019 extraordinary shareholders' meeting.
However, "this does not mean that we will put our plans on hold. On the contrary, we have decided to continue with our program of investment and productive improvements," Samsing said.
The Chilean salmon industry's outlook is “auspicious” in the short- and medium-term, with expectations to end the year with positive results thanks to the reactivation of the HORECA channel (hotels, restaurants, and catering) and the high sales price of salmon, Samsing said.
Salmones Austral's board of directors summoned an extraordinary meeting on 30 August, 2022, for shareholders to vote on both issues, including modifying the bylaws that eliminate the obligation to be subject to the rules of open corporations and under CMF oversight. Both measures were approved.
Salmones Austral was created in 2013 following the merger of Trusal and Pacific Star. Today, it has a maximum production capacity of 80,000 metric tons (MT), and its current annual production of some 45,000 to 55,000 MT is exported to 30 countries. The current composition of its total production is 65 percent Atlantic salmon, and the remaining 35 percent is coho. The U.S. and Asia are the main markets for its Atlantic salmon, while Japan is the primary destination for its coho.
Photo courtesy of Salmones Austral
