You are using an older browser version. Please use a supported version for the best MSN experience.

King Salmon makes splash in NZX debut

NZ NewswireNZ Newswire 4 days ago Jonathan Underhill

New Zealand King Salmon shares rose 3.6 per cent in their NZX debut after the fish farming company raised more than $70 million to fund its growth and allow existing shareholders to reduce their holdings.

The stock first traded at $1.16 on the NZX, valuing the company at about $160m.

It sold about 69 million shares in the IPO, raising $30m of new capital to repay debt, and to fund future investment and working capital, while Malaysian-owned Oregon Group reduced its holding to about 40 per cent, Direct Capital sold $45m of shares and existing minority shareholders reduced their stakes.

Chairman John Ryder said the IPO gave King Salmon "a strong platform for investing in aquaculture growth".

King Salmon plans to use $16.7m of the new capital raised to repay bank debt and shareholder loans and $8.2m to partially fund a new farm, while $5.1m will be gobbled up by offer costs.

The offer attracted food investor China Resources Ng Fund, which bought a 15 per cent of apple exporter Scales Corp from Direct Capital in March, and the New Zealand Superannuation Fund. The Chinese firm took a 10 per cent stake and the New Zealand Superannuation Fund will hold 5.5 per cent.

The company operates seven farms in Marlborough's Pelorus and Queen Charlotte Sounds and has three new farms coming on stream. The consents for the new sites were opposed by environmental groups all the way to the Supreme Court in 2014, which succeeded in winning a protection of "outstanding landscapes" and ruling out another proposed farm.

King Salmon was advised on its IPO and listing on the NZX and ASX by law firm Chapman Tripp. Kit Adamson, a partner at the firm, said 2016 had been "another sluggish year for IPOs, with only three on the NZX main board this year - drawing even with 2015's total tally."

image beaconimage beaconimage beacon