October 14, 2014

Huon Aquaculture to list on Australian stock exchange

With 32% of its initial public offering sold, Tasmania-based salmon producer Huon Aquaculture looks set to go public, according to a report by North Queensland Register.

The initial offering promises the company a market capitalisation of AUD415 million (US$362.2 million).

Huon will be the second Tasmanian salmon producer, after Tassal Group, to be listed on the Australian stock exchange.

"The primary proceeds of AUD125 million (US$109.1 million) raised... will be used to fund a number of key growth projects Huon is undertaking to materially expand production and improve farming efficiency," said the non-executive chairman of Huon, Peter Margin.

No shares will be offered to the general public before the listing, the company said.

A total of 27.9 million shares will be offered at AUD4.75 (US$4.15) per share, comprising of 26.3 million new shares and 1.6 million existing shares being sold by Huon's founders, the Bender family, for a total capitalisation of AUD132.7 million (US$116 million).

The Benders will hold 68% of the company, with new investors possessing 32% upon the conclusion of the offer. Peter Bender remains chief executive officer, along with Frances Bender as executive director.

In addition, the company will have a five-member board comprising the two co-founders and three non-executive directors including chairman, Peter Margin.

Huon's main business is focused in Australia, which consists 94% of their 2014 harvest volume. The company harvested 15.2 million kilogrammes of HOG salmon, at AUD188.4 million (US$164.5 million) in revenue and operating earnings (before interest, tax, depreciation and amortization) of AUD52.4 million (US$46 million) for FY2014.