First Chilean salmon farmer starts trading in Oslo

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Camanchaca is ready to start trading Friday morning.

Managing director Jorge Fernandez and Camanchac placed 19.8 million shares in a stock offering before listing at the Oslo Stock Exchange. At 42 kroner (EUR 4.4) per share, that implies a market value of about 2.8 billion kroner (EUR 292.8 million).

The newcomer secured the ticker SALMON from the OSE.

Oversubscribed
“The Initial Public Offering, or IPO, received strong investor interest and was multiples times over-subscribed,” the company said in a note to investors late Thursday.

The selling shareholder — parent company and conglomerate, Camanchaca — will still control 70 percent of the shares in Salmones Camanchaca, so the free float will be 30 percent of the outstanding shares.

Oslo prices
An important reason for Camanchaca listing its salmon-farming business via its subsidiary Salmones Camanchaca is that shares in salmon companies listed on the Santiago Exchange fail to reach the same high pricing as competitors on the Oslo Exchange.

Salmones Camanchaca is a completely integrated salmon-farming company with its own breeding, grow-out and processing. The company operates in three regions in the south of Chile, where it processes 60,000 tonnes of salmonids, including 48,000 t of Atlantic salmon.

That production is more than Norway Royal Salmon’s, although Salmones Camanchaca’s market value if just half of NRS’s.