Chapman Tripp has advised New Zealand King Salmon on its IPO and dual listing on the NZX Main Board and ASX today (19 October).
The team, comprising Chapman Tripp partners Rachel Dunne and John Strowger, senior solicitor Philip Ascroft and solicitor Kit Adamson, also advised Direct Capital (and funds associated with it) on all aspects of its sell down of shares in New Zealand King Salmon as part of the IPO.
New Zealand King Salmon’s indicative market capitalisation is $154.5 million, based on the IPO share price of $1.12 and excluding certain shares offered under an employee share ownership plan.
Funds raised will be used to repay debt, fund future investment and working capital, and to enable shareholders including Direct Capital to realise some or all of their investment.
The company operates under three key brands – Ōra King, Regal and Southern Ocean – and controls all elements of the production chain, from breeding and growing to harvesting and processing. In the financial year to 30 June 2016, New Zealand King Salmon’s revenues were $114.1 million, with a pro forma operating EBITDA of $16 million.
Dunne said it has so far been another sluggish year for IPOs, with only three on the NZX Main Board this year – drawing even with 2015’s total tally.
“However, there are indications we may see further activity before the year is out to surpass 2015 by a small margin.
“It is heartening to see companies like New Zealand King Salmon that offer investors an opportunity to invest in New Zealand’s primary sector choosing to list.”
A key focus for New Zealand King Salmon was its priority offer for residents in Marlborough and the Nelson Bays, Dunne said.
“Chapman Tripp helped the company to use the more flexible pre-registration advertising regime under the Financial Markets Conduct Act 2013 (FMCA) – enabling retail investors to have access to a detailed Fact Sheet about the company ahead of registration of the Product Disclosure Statement and to express their interest in the IPO ahead of the book-build.
“Chapman Tripp also worked closely with the company and its advisors on the Product Disclosure Statement for the IPO to ensure it met the requirements of the FMCA regime, but was also an attractive and readily understandable read for retail investors.”
Chapman Tripp has acted on three of the five IPOs conducted under the new FMCA disclosure regime.