Aquaculture

Salmon Evolution to raise $60 million in share issue, begin trading on Oslo's small-cap exchange

Money from the share sale will be used for the partial financing of phase one of the project.

Founders: From left Ingjarl Skarvoy, Kristofer Reiten, Jonny Smage, Per Olav Mevold.
Founders: From left Ingjarl Skarvoy, Kristofer Reiten, Jonny Smage, Per Olav Mevold.Foto: Doxacom

Norwegian land-based salmon farmer Salmon Evolution is looking to raise NOK 500 million (€48 million/$57 million) through a share sale, the company announced Tuesday, and use the funds as partial financing of phase one of the project's development.

The company, which is building a land-based, flow-through facility outside Molde, engaged DNB Markets and Pareto Securities to sell up to 100 million new shares at a price of NOK 5 (€0.48/$0.57), and list them on the Oslo Stock Exchange's Merkur Market.

The company is priced at around NOK 600 million (€57.7 million/$68.4 million) before the issue. Existing shareholders have guaranteed at least NOK 91 million (€8.7 million/$10.4 million) of the issue.

In addition, there are three anchor investors who have subscribed for and received shares worth NOK 170 million (€16.3 million/$19.4 million).

These include DNB Asset Management with NOK 110 million (€10.6 million/$12.5 million), Klaveness Marine Finance with NOK 30 million (€2.9 million/$3.4 million) and companies controlled by Fredrik Cappelen, Carl Erik Krefting and Preben Rasch-Olsen with NOK 30 million (€2.9 million/$3.4 million).

In July, South Korean giant Dongwon announced it would invest NOK 50 million ($5.5 million/€4.7 million) into Salmon Evolution in a deal that would bring the Norway-based company's flow-through technology to a new salmon farming operation in Korea, the first international expansion for the land-based salmon farmer. In addition, the deal gave Dongwon a 10 percent stake in Salmon Evolution.
Dongwon announced last week would invest about KRW 200 billion ($168.5 million/€142.1 million) in 35,000 pyeong (116,000 square meters) of land in Gangwon Province, South Korea for the project, producing 20,000 metric tons of fish.

Largest in Europe

Salmon Evolution’s land-based plant will be Europe's largest when completed, with a capacity of 36,000 metric tons. The first construction phase will have a capacity of 9,000 metric tons.

At the end of March, the company announced it had raised NOK 258 million (€24.8 million/$29.4 million) in new financing for the plant.

In total, the first construction phase will cost NOK 1.3 billion (€124.9 million/$148.1 million).

The largest shareholder in the company is Ronja Capital, which is owned by Roger Halsebakk, director of Solvtrans, the world's largest wellboat company.

Normal construction time is 18 months for the first step, board chairman Tore Tonseth told IntraFish in May when construction of the facility began. He said it is the availability of money that determines when the plant is completed.

“The company will need more capital in the future. We have only raised part of the capital that is needed,” he said.

The company expects the shares to be listed on the Merkur exchange around Sept. 18.

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Published 2 September 2020, 22:17Updated 2 September 2020, 22:17
Land-based salmonFarmed salmonDongwonSalmon EvolutionRoger Halsebakk