August 29, 2016

The largest producer of king salmon in the world, New Zealand King Salmon, has announced its intention for a $30 million initial public offering (IPO) on both the New Zealand and Australian stock exchanges (NZX, ASX).

Under the terms of the listing, a priority listing of $1 million of shares will be made open to local residents in Neilson and Marlborough, a fact that company CEO Grant Rosewarne told Stuff.com will lift local ownership and increase transparency for the company.

The capital raised through the float will be used to repay debt, act as working capital, and will enable shareholders to realize a portion or all of their investments, FISHupdate reports. Share Chat expands on this stating that long-term majority shareholder, Malaysian-owned Oregon Group will reduce its holding from 51 percent to 40 percent while another investor, Direct Capital, will cut its holding from 42 percent, but the exact decrease has not yet been announced.

“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 company chairman, John Ryder.

Additionally, Rosewarne told Share Chat that the float will help fund three new salmon farms in the Marlborough Sounds–a location that the company won resource consent for last year.

New Zealand King Salmon is the largest aquaculture producer of king salmon in the world, producing under the three brand names of Ōra King, Regal, and Southern Ocean. It has eight seafarms in the Marlborough Sounds including the three newest farms that are expected to help the company double its annual production from the current 6,000 tons to 12,000 tons. In the financial year ending June 30 2016, New Zealand King Salmon posted revenues of $114.1 million and the company expects to declare dividends of $5 million in 2017 and $5.6 million in 2018.

In addition to a mature domestic distribution network and market share, the company also exports to buyers in North America, Australia, Japan, and other Asian and European markets.

“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,” said company chairman, John Ryder.

“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.”

A product disclosure statement is scheduled to be released during the month of September and the company expects its share to be quoted on the NZX Main Board and ASX in October according to First NZ Capital, a Joint Lead Manager to the offer.

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Lynda Kiernan