Salmon farm. (Photo: Russian Aquaculture)
Russian Aquaculture hopes to gather about 33.7 million in public offering
Wednesday, November 15, 2017, 02:50 (GMT + 9)
Russian Aquaculture has set at between RUB 110 (USD 1.8) and RUB 140 (USD 2.3) the price range of the new shares it will list in market, with which it expects to raise up to RUB 2 billion (USD 33.7 million).
The company pointed out it plans to use the funds from the the secondary public offering for general corporate needs and for implementation of the Company's investment programme under its strategy aimed at creating Russia's leading aquaculture company.
Meanwhile, Russian Aquaculture's major shareholders, who are considering buying shares as part of the offering, expressed their confidence in the long-term growth of the Company and are committed to maintaining its public status.
As a result of the public offering, the Company's free float is expected to increase to as much as 23 per cent of its total share capital.
The firm highlighted that 2016 was a watershed year in the history of Russian Aquaculture and that the entire business was restructured, the composition of the Board of Directors and shareholders changed, and a new long-term strategy was approved.
In addition, as part of the transformation plan, the Company sold its distribution business in order to concentrate on aquaculture.
The company is currently the only one in Russia that farms Atlantic salmon in maritime conditions and has an approximately 20 per cent share of Russia's chilled salmon market, of nearly 60,000 tonnes.
The company reported an increase in sales volumes to 6,936.3 tonnes in the first half of this year from 833.1 tonnes a year ago. In the same period, its revenue reached RUB 3,343 million (USD 56.3 million) from RUB 295.8 million (USD 5.0 million) in 2016.
- Russian Aquaculture plans share public offering to develop growth strategy