Norwegian integrated aquaculture group NTS's newly established and part-owned Icelandic salmon farming operation, Ice Fish Farm, will list its shares on the Merkur Market in early June if all goes well with the potential private placement.

Ice Fish Farm is looking to issue a private share placement of a combined NOK 380 million (€35 million/$38 million) to invest in its value chain.

The salmon farmer will invest in the expansion of its smolt capacity, new farming equipment and biomass build-up, as well as grow production within its existing licenses.

The company intends to raise NOK 300 million (€27 million/$30 million) by offering new shares at a price of NOK 33.50 (€3.06/$3.34) per share.

Ice Fish Farm also expects to benefit from proceeds of NOK 89 million (€8 million/$9 million) through the sale of existing shares in the company.

A portion of the primary proceeds will be used to repay convertible loans to Ice Fish Farm's majority shareholder, Midt-Norsk Havbruk, worth NOK 59 million (€5.3 million/$6 million).

Midt-Norsk Havbruk is pre-committed to acquiring shares of up to NOK 70 million (€6.4 million/$6.9 million) in the private placement.

Two investors, DNB Asset Management and Swedbank Robur, are also planning to subscribe for shares worth NOK 100 million (€9 million/$10 million) and NOK 40 million (€3.6 million/$4 million) respectively and subject to certain conditions.

Recording investor demand for shares will start on May 26 and close on May 28, however, the company may decide to close or extend the period at its sole discretion.

Ice Fish Farm currently holds licenses for 20,800 metric tons of capacity on the east coast of Iceland and has applied for an additional 16,800 metric tons. It expects a harvest volume of around 6,000 metric ton in 2020, around 7,000 metric tons in 2021 and 16,000 metric tons in 2022.

ABG Sundal Collier and DNB Markets are acting as financial advisors to the potential private placement.

NTS recently completed its merger with the Froy Group, becoming the largest single shareholder of Norway Royal Salmon (NRS).

Finance

NTS-owned Icelandic salmon producer Ice Fish Farm to list on Merkur Market