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£12 million of Russian salmon shares for sale

Rob Fletcher
Rob Fletcher
15 November 2017, at 9:56am

Shares in Russian Aquaculture are now on sale, as the country’s largest aquaculture company seeks to raise RUB 2 billion (£12.6 million).

The company is prepared to sell between 14 million and 18 million shares to implement its corporate strategy. This includes a plan to produce up to 30,000 tonnes of Atlantic salmon and rainbow trout by 2025 – up from its current level of around 15,000 tonnes. In the longer term, the company also plans to build a smolt plant in Russia and to become one of the world’s largest producers of Atlantic salmon.

The company has recently announced its intention to conduct its secondary public offering of new ordinary shares, with the price range for the offering set at between RUB 110 and RUB 140 per share. The average weighted share price year-to-date on the Moscow Exchange falls approximately in the middle of this range. As a result of the offering, the company’s free float is expected to increase to as much as 23 percent of its total share capital. Otkritie Bank and Gazprombank are acting as the joint global coordinators and bookrunners for the offering.

In 2016 Russian aquaculture’s entire business was restructured, the composition of the Board of Directors and shareholders changed, and a new long-term strategy was approved. As part of the transformation plan, the company sold its distribution business in order to concentrate on aquaculture. It has since acquired two Norwegian smolt production companies and now has 29 licences for salmon and trout production – the former in the Murmansk region of the Barents Sea and the latter in the lakes of Karelia.