Russian Aquaculture presented to the Board of Directors the issue of determining the value of shares, the company said (the voting results at the time of this publication were not known). It plans to hold a secondary offering of shares on the stock exchange; to do so, the law requires such an assessment, as CEO of Russian Aquaculture Ilya Sosnow and the largest shareholder of the company (47.9% as of 31 December 2016) brother of the governor of the Moscow region Maxim Vorobiev expained Vedomosti.
Placement of the company will be hold in the summer and autumn of 2017, it is planned to raise up to $50 million for further development of the company, adds Vorobiov.
First of all, the company is ready to invest in the construction of new farms in the Barents Sea. Russian Aquaculture will both fill the 11 existing sites with fish (now two are filled), and participate in new tenders for the distribution of water areas. At the end of 2017 the company expects to increase production by about 50% to more than 9000 tons.
In recent years, Russian Aquaculture has been haunted by troubles. Introduced in August 2014, counter-sanctions banned the import of certain foodstuffs from the United States, Europe, Canada, Australia, which accounts for the bulk of the imported products, which sold a distribution division of Russian Aquaculture, Russian Fish Company (RSC). Soaring prices have reduced the demand for the company's products. In addition, first burned the primary processing plant in the Murmansk region, and then the disease of fish spread: salmon lice and mycobacterios. As a result, in 2015 the company's losses more than tripled. To stabilize the situation, the company decided in 2016 to sell the RSC to its general director Dmitry Dangauer and the fund of ex-governor of Primorye Sergey Darkin for 1.8 billion rubles.
Russian Aquaculture is the largest Russian producer of lake trout and Atlantic salmon. In addition to Vorobiev, the company's shares are owned by Mikhail Kenin (23.5%), co-owner of Samolet Development Another 23.4% are owned by MC Svinin and Partners. The company last year bought a 14.6% stake from the son-in-law of Gennady Timchenko Gleb Frank, who is tired of the company to suffer losses.
However, the company's business improved noticeably: its revenues in 2016 increased almost threefold to 2.5 billion rubles due to the growth of production and favorable market conditions, the company said last week. In addition, the sales of the RSC and the absence of fish diseases allowed the company to reduce its debt by almost a third to 3.2 billion rubles.
The company has shown good financial results, and is now planning to develop, and investment is needed, say Vorobiev and Sosnov. Participation in the SPO may be of interest for many investors, Vorobiev hopes. He himself intends to take part in the additional issue. "I believe in this project and plan to participate in the additional issue," he said.
The company will have difficulties with successfully offering as the investors remember how disappointing were the results of work carried out by the company after the IPO in 2010, analyst Marat Ibragimov at BCS said. Then the company raised on the Moscow stock exchange $90 million instead of the planned $200 million. The company's capitalization declined from 14 billion to 6 billion rubles. Now the company will have to convince the investors about the reliability of its business and that it is able to generate a profit, says Ibragimov.