Russian Sea Group on Tuesday launched a road show for its initial public offering (IPO) on the Russian Stock Exchange, aspiring to raise as much as EUR 130 million (USD 173.5 million).
The vertically integrated company comprises three key divisions: Ready-to-Eat (Russian Sea Co.), Chilled & Frozen (Russian Fish Co.) and Fish Farming (Russian Sea Aquaculture). The company's Ready-to-Eat division includes lightly salted smoked salmon and trout, caviar (red and capelin), various types of canned herring, shrimp, seaweed and mussels.
Commenting on the IPO, Russian Sea CEO Dmitry Dangauer said, "We believe the offering provides a new and exciting opportunity for investors. Our strong brands and wide distribution network support our leading position in the fish and seafood products market, which is one of the fastest growing sectors in the Russian food market. We look forward to meeting investors during the road show and introducing them to our plans to capture this growth for the benefit of our shareholders."
While the company's primary market is Russia, with products sold mainly in hypermarkets and supermarkets in metropolitan areas, its products are also sold in Australia, Armenia, Azerbaijan, Serbia and Kazakhstan.
In 2009, Russian Sea's products represented approximately 10.4 percent of the Russian seafood market in revenue terms, according to AC Nielsen.
The company produces more than 60 seafood products from its production facility, opened in 1998 in Noginsk, approximately 40 kilometers from Moscow.
"We have seen consistent growth in the demand for fish and seafood products in Russia, including during the recent economic downturn," explained Dangauer. "We are confident that the revival of economic activity, combined with the shift in consumer preferences toward fish and seafood products, will provide us with a firm basis for the further development of the group. In order to take full advantage of this opportunity, we will continue to invest in broadening our product lines and distribution network, as well as developing our aquaculture business."
April 6, 2010
