Last year, King Salmon's seven floating seafarms in the Marlborough Sounds generated $114 million in revenue from exports to North America, Australia, Asia and Europe.
No details of current shareholding splits, the number or price of shares were released yesterday, but King Salmon is launching an IPO (initial public offering) website tomorrow.
New Zealand's salmon industry is estimated to be worth about $180 million.
King Salmon chief executive Grant Rosewarne said in an interview with the ODT the company was looking for a ``primary raising'' of around $30 million, plus whatever the exit amount is for Direct Capital Partners Lambda Investments, which with other shareholders has a more than 40% stake.
He said Oregon would sell down its 50.88% to 40%, while Direct Capital was yet to make a decision on its sell-down.
``That could be an exit entirely or in part,'' Mr Rosewarne said of Direct's more than 40% holding.
He described the company as the world's largest aquaculture producer of king salmon, also known as chinook or quinnat, with a 50% global market share of the species.
It operates under three key brands: Ora King, Regal and Southern Ocean.
``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,'' Mr Robertson said.
As part of the IPO, Mr Rosewarne said a ``priority offer'' would be made available to eligible residents around the Marlborough and Nelson Bays regions.
``We're a New Zealand-based company and want people to have the opportunity to find out what we do,'' he said.
The proceeds of the offer would be be used to repay debt, fund future investment and working capital, which included the three newly consented farms, Mr Rosewarne said.
Chairman John Ryder said the continued involvement of major shareholders Oregon Group and other shareholders reflected their ongoing support for New Zealand King Salmon.
``The company has a well-established domestic market presence and share, and a history of successfully selling our products in offshore markets including North America, Australia, Japan and other parts of Asia, and Europe and other countries,'' Mr Ryder said in a statement.
The New Zealand salmon farming industry had been recognised as a global leader in sustainable seafood.
NZ King Salmon Investments
- Company 30 years old. Oregon Group first invested in New Zealand King Salmon 20 years ago.
- Owns and operates 11 Marlborough Sounds sea farms; 7 operational, 1 mothballed and 3 new farms for development, consented in 2014 with a 35-year term.
- Over time, new sea farms expected to double annual production from the current 6000 tonnes.
- Employs total 440 people, including 85 in sea farming and 240 processing, in Nelson.
- Year to June 2016 — New Zealand King Salmon generated revenue of $114.1million and pro forma operating earnings before interest, tax, depreciation and amortisation of $16million.
- Year to 2017 forecast — New Zealand King Salmon expects to declare dividends of $5million, or 50% of forecast pro forma operating after-tax profit.
- Year to June 2018 forecast — pro forma operating after-tax profit $5.6million.
- King salmon, also known as Chinook, is the largest species of the Pacific salmon family, including sockeye, coho and pink salmon. From egg to harvesting takes about 18 months, including about a year in seawater.
Source: New Zealand King Salmon Investments
Company structure
- New Zealand King Salmon Investments Ltd.
- Incorporated 2008, registered office Nelson.
- Six directors: Mark Hutton
(Auckland), Jack Porus
(Auckland), Grant Rosewarne
(Nelson), John Ryder
(Christchurch), Thomas Song
(Auckland), Paul Steere (Nelson).
Top seven shareholding allocation
50.88%: Oregon Group Ltd.
12.63%: Direct Capital Partners Lambda Investments Ltd.
10.77%: Pohutukawa Lambda Investments Ltd.
7.87%: Direct Management Investments Ltd.
7.49%: NZKS Custodian Ltd.
6.29%: Biopacific Ventures Ltd.
3.33%: Direct Capital Partners Ltd.
Source: Companies Office
