New Zealand King Salmon has confirmed its intention to undertake an initial public offering of shares in New Zealand and a listing on the NZX and ASX.
Proceeds of the offer will be used to repay debt, fund future investment and working capital, and to enable investor Direct Capital and some other shareholders to realise some or all of their investment, the company said in a statement.
The company is controlled by Oregon Group, the investment firm of Malaysia's Tiong family headed by Tan Sri Sir Tiong Hiew King, with 51 percent. Auckland-based private equity group Direct Capital has about 45 per cent.
NZ King Salmon confirmed in July that it was looking at its capital structure. As part of the initial public offering, a priority offer is intended to be made available to eligible residents in the Marlborough and Nelson Bays regions.
"New Zealand King Salmon is the world's largest aquaculture producer of the premium King salmon species and the company controls all elements of the value chain from breeding and growing to harvesting and processing, and has been growing and selling salmon to consumers and chefs for more than 30 years," it said in a statement.
Current majority shareholder Oregon Group first invested in New Zealand King Salmon 20 years ago. Together with existing shareholders, including current and former members of the senior leadership team and directors, Oregon Group will retain a significant stake in the company following the offer.
NZ King Salmon chairman John Ryder said the company had a well-established domestic market presence and share, and a history of successfully selling products to North America, Australia, Japan and other parts of Asia, and Europe and other countries.
Oregon Group is also a holding company for Ernslaw One, Winstone Pulp, Neil Group, The Lumberbank, Talus Industries and Oregon Nurseries.
NZ King Salmon owns and operates eight seafarms in the Marlborough Sounds, including three new farms consented in 2014 with a 35 year term. Over time the new seafarms are expected to enable the company to about double annual production from the current 6,000 tonnes.
In the financial year to 30 June 2016, New Zealand King Salmon generated revenues of $114.1 million and pro forma operating earnings before interest, tax, depreciation and amortisation of $16.0 million.
For the 2017 financial year, New Zealand King Salmon is expecting to declare dividends of $5.0 million, or 50 per cent of forecast Pro Forma Operating Net Profit After Tax, and $5.6 million in 2018. The company anticipates that its dividends will be fully imputed.
As part of the initial public offering, a priority offer is intended to be made available to eligible residents in the Marlborough and Nelson Bays regions.
The joint lead managers are First NZ Capital Securities Limited and Macquarie Capital (New Zealand).
The New Zealand share market has seen two new listings so far this year - food group Tegel and media company NZME.
Analysts said a strongly performing share market has created attractive conditions for new floats.