Nordic Halibut has announced it will renew its plan to seek listing on the Euronext Growth market (formerly the Oslo Børs) market to help it enter “a new era in halibut farming.”
Averøy, Møre og Romsdal, Norway-based Nordic Halibut was founded in 1995, but has suffered biological and operational challenges, racking up losses of around NOK 200 million (USD 23.9 million, EUR 20 million) between 1998 and 2018, according to Norwegian newspaper Dagens Næringsliv (DN).
The company, which is backed by two of Norway’s largest shipping magnates, submitted an application to join the Euronext Growth market on 9 April after withdrawing its first application in March, citing unfavorable market conditions. Nordic Halibut CEO Edvard Henden said the company decided to conduct an initial private placement with selected investors before reapplying.
Through its private placement, Nordic Halibut raised NOK 115 million (USD 13.5 million, EUR 11.5 million) in fresh capital from current owners and invited investors, against the NOK 270 million (USD 31.5 million, EUR 26.9 million) it had planned to raise, according to Henden. The new funds will partially finance the company’s growth plans, including the development of new land-based broodstock facilities, expansion of sea site operations, and the establishment of a value-added production facility, he said.
“On that basis, we will scale up production significantly and build a market position. With the capital that is now in place, we get the opportunity for large-scale production and open new markets. We are financed for a few years now, so we need to prove we can deliver on milestones, then raise more money at a later date,” Henden said.
The company’s per-share price remained the same as at the first attempted listing, at NOK 22.50 (USD 2.60, EUR 2.24) per share, which makes the company worth NOK 402 million (47 million, EUR 40 million).
Nordic Halibut has licences in place to produce 4,500 metric tons (MT) of fish each year and plans to increase production to 9,000 MT per year by 2030.
“We have space and the opportunity to produce halibut in a much larger volume than we do today, and are now developing the company to be able to deliver what the market demands at any time,” he said.
According to Henden, Atlantic halibut is well-adapted to the conditions on the northwest coast of Norway, where the fish thrive in sea cages, taking around four years to grow from egg to plate. He praised the “fantastic properties” of the fish in terms of nutritional value, usability, and high fillet yield, opening the possibility for his company to produce a “sustainable superfood,” Henden said.
“It is with great enthusiasm that we at Nordic Halibut, our owners, and other key partners take on the journey ahead with great confidence,” he said. “Sustainable superfood coupled with significant volumes and profitability potential mean it’s full steam ahead with the business.”
Photo courtesy of Nordic Halibut