Salmon producer Inarktika announced an SPO on the Moscow Exchange – Kommersant

One of the major producers of aquaculture salmon and trout, PJSC Inarctic, announced the start of a secondary placement of ordinary shares on the Moscow Exchange (MOEX: MOEX). This was stated in a company message received by Kommersant.

“As a result of the SPO, the Company plans to increase the share of free float to at least 18%, part of the funds will be used to develop the business,” the material states.

The price range will be from 900.0 rub. up to 968.5 rub. for one share. The final cost will not exceed the closing price of the last trading day of the order collection period, but will be set within the price range, the company expects. Cash from the sale of the treasury stake, minus the costs of organizing an SPO of shares, will be used for business development and general corporate purposes

The collection of applications for participation in the SPO runs from November 23 to November 29, 2023. Inarctic warned that it could be completed ahead of schedule by decision of the selling shareholders.

After the publication of the company’s message, shares of Inarktika on the Moscow Exchange dropped to 924 rubles. (-4.55%). By 10:15 the fall had slowed down, the price of the securities amounted to 947 rubles. (-2.17%).

The main shareholders of Inarktika were Maxim Vorobyov and his brother, Governor of the Moscow Region Andrey Vorobyov. Until December 2022, they owned 47% of the company. After Messrs. Vorobyov came under US sanctions, Inarktika announced a reduction in Maxim Vorobyov’s share to less than 24%.

A presentation for investors prepared by Inarktika for the SPO, which Kommersant has at its disposal, states that in January-September 2023, product sales amounted to 20.3 thousand tons, which is 6% more year-on-year. Revenue for this period reached 20 billion rubles. – this is 10% compared to nine months of last year. The profitability level for the three quarters of 2023 was 45%, while a year ago this figure was 55%. The expected amount of dividend payments at the end of 2023 exceeds 4 billion rubles, while last year their total amount was 3.3 billion rubles, in 2021 – 1.5 billion rubles.

At the same time, the total debt burden of Inarctic as of June 2023 amounted to 13.7 billion rubles, of which 43% are long-term loans, 35% are short-term loans, 22% are bond obligations. The company’s presentation states that current debt is equal to one size of EBITDA.

Petr Buzlaev