South African fishing company Sea Harvest has planned to raise as much as ZAR1.3 billion (USD100 million) in a stock market flotation that values the company at ZAR3.4 billion.
The Sea Harvest Group, whose main business is fishing hake and prawns and processing the catch into frozen and chilled seafood, will sell about 92 million shares, or a 38.7 percent stake, at between ZAR12 and ZAR14.50 each. The company will set the final initial public offering price on March 20 and is due to make its debut on the Johannesburg Stock Exchange on March 23.
Sea Harvest, which has operations in South Africa and Australia, will use the money to repay debt and speed up its growth plans via investments and acquisitions as part of its strategy to become a diversified global seafood company.Brimstone, an investment holding company, is the majority shareholder in Sea Harvest, which said its parent will retain its controlling interest after the listing.
The company, which has a 36.7 percent share of South Africa’s frozen seafood market, packages for retail and foodservice customers in Spain, Italy, Australia, Germany, Portugal, France and the Netherlands.
Sea Harvest’s net profit more than tripled to ZAR131 million for the year ended 31 December 2016 on sales of almost ZAR2 billion.
Sea Harvest is the second seafood company to list on the Johannesburg Stock Exchange after Premier Food and Fishing Limited, a subsidiary of African Equity Empowerment Investments, listed 117 million shares last week.