NZ King Salmon review capital options, eyes listing

Te Pangu and Clay Point at the New Zealand King Salmon Farm.

New Zealand King Salmon is reviewing its capital options to support its ongoing growth opportunities and the development of three new farms in the Marlborough Sounds, the company said in response to speculation that it planned to list.

"No decisions have yet been made and the company will be making no further comment at this stage," the company said in a short statement.

The Australia Financial Review's "Street Talk" speculated the private equity-owned New Zealand King Salmon was lining up for an initial public offering and listing on both sides of the Tasman in the coming months.

One Auckland-based fund manager confirmed that NZ King Salmon was potentially coming to the market, which so far this year has seen food group Tegal and media company NZME list. "We are looking forward to seeing the details," he said.

Despite high levels of volatility on world share markets, the New Zealand share market has continued to perform strongly, driven largely by a proportionately high level of dividend paying stocks, and creating attractive conditions for new floats.

Brokers Credit Suisse and its affiliate First NZ Capital have already started testing investor interest in the stock, quietly introducing the company to institutions as part of a non-deal roadshow about one month ago, the AFR said.

The paper said it was understood NZ King Salmon was targeting sales of about $115 million and earnings before interest, tax, depreciation and amortisation of close to $15 million, post listing.

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.

The company - New Zealand's largest salmon producer - operates seven farms in Marlborough's Pelorus and Queen Charlotte sounds and has three new farms coming on stream.

NZ King Salmon reported a loss of $1.5 million on revenue of $95.1 million in the year ended June 30, 2014, the latest financial statements filed with the Companies Office.

The AFR reported the company was targeting sales of $115 million and earnings before interest, tax, depreciation and amortisation of $15 million once it's listed.

- with BusinessDesk