NZ King Salmon to sell shares
New Zealand King Salmon plans to raise $180 million through an initial public offer (IPO) and dual list on the New Zealand and Australian stock exchanges.
Money raised will be used to repay debt, fund investment and working capital, and to allow existing shareholders to cash in on some or all of their investment.
New Zealand King Salmon has been growing and selling salmon for more than 30 years and is the world’s largest producer of king salmon.
It owns three brands: Ora King, Regal and Southern Ocean and operations include breeding, growing, harvesting and processing.
Majority shareholder Oregon Group first invested in New Zealand King Salmon 20 years ago and will retain a significant stake in the company.
New Zealand King Salmon chairman John Ryder said the company sold products in North America, Australia, Japan and other parts of Asia, and Europe.
‘‘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,’’ Ryder said.
The company owns and operates eight sea farms in the Marlborough Sounds, including three new farms consented in 2014 with a 35-year term.
The new farms are expected to eventually double annual production to 12,000 tonnes.
Company chief executive Grant Rosewarne said he believed the public offering would allow it to be more transparent and more locally owned.
A priority offer would make available $1m of shares for people in Nelson and Marlborough.
‘‘We would like to be owned by more local people,’’ Rosewarne said. ‘‘The opportunity is there.’’
He said the value of the company was ‘‘north of $100m’’.
Rosewarne said raising the new capital would also lead to new jobs in the top of the south - both at the new farms themselves and at the company’s processing facilities in Nelson.
Marlborough resident John Leader said he could see little economic benefit to Marlborough residents if they invested in the company.
‘‘I think Nelson residents will be better off due to much of the processing and administration being done there than in Marlborough,’’ he said.
The retired marine biologist has been a vocal critic of the company.
‘‘It’s illusory for King Salmon to think they can increase production when the waters are too warm in the Sounds to farm salmon.
‘‘They’ve never managed to make it viable and it has never been as profitable as they have intended.’’
In the year to June 30 New Zealand King Salmon earned $114.1m in revenue.
For the 2017 financial year, it was expecting to issue $5m in dividends and $5.6m in 2018.