TASMANIAN salmon producer Huon Aquaculture is "going public", selling 32 per cent in an initial public offering (IPO) in what continues to be a largely successful year for private companies looking to list on the Australian stock exchange.
Huon will be the second Tasmanian salmon producer to join the ASX after market pioneer Tassal Group.
Tassal's share price has gone from $1.50 to $3.50 in the past two years.
Husband and wife co-founders Peter and Frances Bender established Huon in 1986 and are pursuing funding flexibility to support future growth plans for salmon and trout farming, production and distribution in Australia.
"The primary proceeds of $125 million raised... will be used to fund a number of key growth projects Huon is undertaking to materially expand production and improve farming efficiency," Huon non-executive chairman Peter Margin said.
Fully underwritten by lead manager Credit Suisse Australia, the offer consists of four separate allocations, being an institutional, broker firm, employee and priority offer.
No shares will be offered to the general public before listing.
A total of 27.9 million shares will be offered at $4.75 a share, comprising 26.3 million new shares and 1.6 million existing shares being sold by the Bender family, for a total capital raise of $132.7 million.
Once the offer is complete the Bender family will retain 68 per cent of the company and new investors will hold 32 per cent.
The offer opens on October 14 and closes on October 17. The IPO will result in Huon Aquaculture having a market capitalisation of $415 million.
Peter Bender will remain chief executive officer overseeing all leadership, operations and strategic direction, and Frances Bender will be an executive director.
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 focus is the Australian market, which makes up 94 per cent of their financial year 2014 harvest volume. Huon harvested 15.2 million kilograms of HOG salmon (their main product), resulting in $188.4 million in revenue and operating earnings before interest, tax, depreciation and amortisation of $52.4 million for FY2014.
Huon claims to have well-established supply chains and domestic market share, and a skilled, experienced management team.
Risks include feed price and supply, weather and environment, and volatility in the demand for salmon.
