Salmon is on the menu at both the NZX Main Board (NZX) and the ASX with the listing this month of the world’s largest aquaculture producer of King salmon. The initial public offer (“IPO”) for Nelson / Marlborough-based New Zealand King Salmon was for 69.2 million ordinary shares, quoted under the ticker NZK.
With the government supporting well-planned and sustainable aquaculture growth, New Zealand King Salmon sought $30.0 million in new capital to repay debt, and to fund future investment and working capital.
As a result of the fully subscribed IPO, and based on the $1.12 price per share, the company’s market capitalisation is $154.5 million, excluding certain shares offered under an employee share ownership plan.
New Zealand King Salmon Chairman John Ryder says salmon represents a “healthy” ingredient to any investment portfolio. “The planet’s resources need careful management, at the same time as the world’s growing population is crying out for increased nutritious food production. Farmed salmon in particular represents an efficient and sustainable way of meeting those needs.
“The New Zealand King Salmon IPO has provided us with a strong platform for investing in aquaculture growth, something the New Zealand government strongly supports with a goal of increasing revenue from the aquaculture industry to more than NZ$1 billion by 2025*.
“Now all New Zealanders can invest in and share in this growth and prosperity,” Ryder says.
As part of the IPO, existing investor Direct Capital has sold $45.0 million of shares and major shareholder Oregon Group has reduced its shareholding to approximately 40%. Other existing minority shareholders have sold approximately $1.5 million of shares in aggregate.
John Ryder says it is extremely pleasing New Zealand investors have demonstrated strong support for the IPO. Shares were 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.
In a strong show of community support for the company, the Priority Offer of $1.5 million of shares to eligible residents in the Marlborough and Nelson Bays regions was fully subscribed,” Ryder says. “New Zealand King Salmon is also proud to have sovereign, ethical and iwi investors on its register.”
The joint lead managers of the IPO were First NZ Capital Securities Limited and Macquarie Capital (New Zealand) Limited (acting through its affiliates).
