Russian Sea Group will invest the proceeds of its initial public offering in facility expansion. (Photo: Russian Sea Group)
Seafood giant looks to raise USD 200 mln in IPO
Tuesday, March 23, 2010, 00:30 (GMT + 9)
National seafood producer and distributor giant Russian Sea Group announced on Monday its plan to launch an initial public offering of up to USD 200 million in the form of ordinary shares.
This will be an offering of existing ordinary shares by Corsico Limited and the group to investors in the country and beyond and expects to receive about half of the proceeds. These will be used for investments in the firm’s production facility, aquaculture operations, partial repayment of debt and expansion in working capital to support sales growth.
Russian Sea, known as Russkoye Morye in Russian, intends to apply for the listing of its ordinary shares on both the Russian Trading System Stock Exchange and the Moscow Interbank Currency Exchange, in what would be the first initial public stock offering (IPO) of 2010 in the country. The move will begin on 6 April and national banks VTB Capital and Renaissance Capital will act as joint book-runners to the scheme, Reuters reports.
“We are confident that the revival of economic activity, combined with the shift in consumer preferences towards fish and seafood products will provide us with a firm basis for the further development of the Group,” Russian Sea CEO Dmitry Dangauer said. “In order to take full advantage of this opportunity, we will continue to invest in broadening our product lines and distribution network, as well as developing our aquaculture business.”
Russian Sea, producer and distributor of ready-to eat and chilled and frozen fish and seafood, was founded in 1997 and began by importing Norwegian herring and mackerel. In 1999, the company launched its ‘Russian Sea’ branded ready-to-eat fish products and continued growing producing and distributing fish products, such as salted and smoked salmon and trout, red caviar, herring products, seaweed products and roe spreads.
Russian Sea encompasses three business divisions operated by wholly-owned subsidiaries Russian Sea Company, Russian Fish Company and Russian Sea Aquaculture.
By Natalia Real