Icelandic salmon farmer Arctic Fish, a company 50 percent owned by Norway Royal Salmon (NRS), has engaged DNB Markets, Pareto Securities and Arion Bank as financial advisers to explore a potential listing on Oslo's Merkur Market.

It is expected that a listing will take place within the first quarter of 2021.

NRS does not intend to sell any shares in connection with the potential transaction, with the possibility of surpassing 50 percent ownership.

Arctic Fish operates at five sea sites in three fjords on the Westfjords peninsula of Iceland. It currently holds licenses for 11,800 metric tons capacity with applications for an additional 21,100 metric tons.

Arctic Fish expects to harvest around 7,700 metric tons of HOG salmon in 2020, 11,700 metric tons in 2021, and to gradually increase harvest volumes to approximately 24,000 metric tons in 2025, according to the current business plan.

NRS announced the potential listing the same day of its third quarter results, which showed a harsh earnings knockdown in the face of rocketing production costs.

2020's IPO rush

Seventeen seafood companies are currently listed on the Oslo Stock Exchange's marketplaces, the most recent being SalMar's Icelandic Salmon (Arnarlax) and Norwegian cod farmer Norcod.

Land-based producer Salmon Evolution, which counts Korean fishing giant Dongwon among its major shareholders, listed on Oslo's lower cap Merkur Market in September. On the first day, its share price rocketed more than 50 percent from the price at which it raised fresh capital a few weeks before the listing.

Kjell Inge Røkke-controlled krill company Aker Biomarine was also listed this summer with a market value of NOK 9.2 billion (€989.1 million/$843.6 million), becoming the largest new listing so far this year ahead of the video conferencing company Pexip, which was priced at NOK 8.7 billion.

But not all planned listings go ahead, with Norsk Sjomat and Nergard's planned listing and merger cancelled last minute last week, a move blamed on a turbulent market.

According to an overview from the Oslo Stock Exchange, seafood accounts for more than 10.3 percent of the total stock market's overall value. The corresponding figure for energy shares is 23.5 percent. This figure has fallen in recent years, while seafood shares have risen.

NRS and fellow salmon farmer Midt-Norsk Havbruk are in merger talks, NRS confirmed to the Oslo Stock Exchange last month.