NZ King Salmon float final price set at $1.12 a share

The final price for New Zealand King Salmon shares, set near the bottom of the indicative range for the institutional book build, values the salmon farmer at $154.5 million, below initial indications of $200 million.

The final price of New Zealand King Salmon shares has been set at $1.12 a share, near the bottom of the indicative range, valuing the company at $154.5 million.

Initial indications had put the company’s worth at about $200 million.

Chairman John Ryder says the offer received strong support from investors with demand exceeding the size of the offer at the final price.

The company intends to list on both the NZX and ASX exchanges in October.

Although the details of the book build were supposed to remain secret, the investment banks running the float process, First NZ Capital and Macquarie, released the information on Wednesday after a partial leak to the Australian Financial Review.

The range for the book build with institutional investors and broking firms had been set at $1.10 to $1.20 a share, representing between 7.75 times and 8.32 times earnings before interest, tax, depreciation and amortization (ebitda) for the year ending June 2017.

Although the product disclosure statement, the document which replaces prospectuses and investment statements, is expected to be registered today, the company has already disclosed in a publicly available fact sheet that ebitda is expected to rise from $13.8 million in the year ended June to $21.1 million in the current year and to $26.1 million in 2018.

The priority offer, for which eligible residents of the Marlborough and Nelson Bay regions were asked to register by September 12, and the retail offer through broking firms only are expected to open on October 3.

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