Sea Harvest offering attracts strong demand
By Marc Hasenfuss - Mar 20th, 08:46
The fishing company, controlled by empowerment group Brimstone, says strong demand for its shares prompted a decision to increase the offer size to investors
Fishing company Sea Harvest, which will list on the JSE later in March, has raised more than R1.3bn in a pre listing share placement exercise.
Sea Harvest said on Friday that strong demand for its shares had prompted a decision to increase the offer size to investors. The shares were placed at R12.50/share, which is at the lower end of the indicative placement range of R12/share to R14.50/share.
The net proceeds of the offer will be used to settle bank debt and a preference shares redemption loan as well as to repay shareholder loans and management loans. The funds raised will also be mobilised to make investments in land-based and vessel efficiency gains as well as to pursue acquisitions in SA and in Australia.
Sea Harvest, which is controlled by empowerment group Brimstone, is a major player in the South African hake sector, but also holds a controlling stake in Australian-listed seafood business Mareterram.
The share placement price infers a market capitalisation of about R3.1bn, markedly bigger than Premier Fishing, which listed earlier in March and has a market cap of about R1.2bn.
Sea Harvest showed normalised revenue of about R2bn and pretax profit of R151m in the 2016 financial year. An investment presentation showed the new capital structure after the R1.3bn share placement would have boosted Sea Harvest’s pre-tax profit to more than R217m.
© BusinessLIVE MMXVII
Sea Harvest debuts on JSE Main Board under Share Code: SHG
23/03/2017 - 11:18
The Sea Harvest Group (SHG) listed on the Johannesburg Stock Exchange (JSE) today, 23 March 2017, with 42% of the company floated at a trading price of R12,50 per share raising R1.33 billion, resulting in a group market capitalisation of c.R3.14 billion. The money raised will be used to pay down debt and fund growth both locally and internationally allowing it to fulfil its vision of becoming a diversified global seafood company.
Brimstone to list Sea Harvest on JSE
08/02/2017 - 08:51
Brimstone Investment Corporation Limited announced today its intention to list leading vertically integrated seafood company Sea Harvest. A capital raising of up to R1.5 billion (Private Placement) will be undertaken by Sea Harvest simultaneously with the proposed listing.
Sea Harvest's success positions it for growth
16/01/2017 - 09:34
Sea Harvest has enjoyed two years of significant success. The company's shareholders invested close to R600 million in capital and investment growth this year alone, seeing Sea Harvest becoming one of the largest vertically integrated black-owned fishing companies in the country.
Sea Harvest launches a new scheme to share its bounty
15/06/2015 - 11:21
Black-owned fishing company Sea Harvest has launched a new share scheme that will see it issuing more than 4 million shares to its employees.
I&J must remove copycat product from freezers
07/04/2011 - 15:04
Quick action by Sea Harvest’s field agents averted significant financial losses that may have resulted from competitor Irvin & Johnson (I&J) launching a product that mimicked Sea Harvest’s Oven Crisp similar coated fish pieces.