Inarctica announces SPO on Moscow Exchange, shareholders offering 3.3 mln shares

MOSCOW. Nov 23 (Interfax) - Inarctica , a leading producer of Atlantic salmon and trout in Russia, has announced a secondary public offering on the Moscow Exchange.

According to the press release, the selling shareholders, Inarctica North-West LLC and JSC IGS Invest, as part of the placement, will offer a package of the company's ordinary shares totaling 3.3 million shares, which is around 4% of the company's charter capital.

Inarctica North-West, a subsidiary of IGS Invest, is owned by Inarctica General Director Ilya Sosnov. The announcement does not indicate how the volume sold is to be distributed between the quasi-treasury package and Sosnov. The company told Interfax that the proportion will be determined based on the results of order collections in the applications book. Reinvestment into the company of funds received from the IGS Invest SPO via the mechanism of a subsequent additional issue of shares is not provided for in the offering.

The price range is from 900 rubles to 968.5 rubles per share. The upper bar corresponds to the closing price on Wednesday; the lower bar corresponds to a discount to it of about 7%. The volume of attraction in case of placement at the lower limit will be about 3 billion rubles.

As a result of the SPO, the share of free float should be at least 18%, and part of the funds will be used to develop the business, the statement says.

The company expects that the final price 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 application collection period for participation in the SPO opens November 23 and will last until November 29, but can be closed early by decision of the selling shareholders.

Six months after the transaction, investors will have the right to purchase one additional share at the secondary offering price for every five shares purchased under the SPO. The broker of the selling shareholders is the Sinara investment bank.

As stated by General Director Ilya Sosnov in the press release, there are already over 130,000 Inarctica shareholders. "The secondary placement will allow us to increase the share of the company's free float. An increase in free float should increase the liquidity of our securities and increase the market value of the company, which is one of management's key tasks. We plan to invest the funds raised from the sale of the treasury stake in the further development of the business," he said.

The company's charter capital is divided into 87,876 649 shares with a par value of 100 rubles each. The main owners of the company are Sosnov and Svinin and Partners Management Company LLC, with 24.9%; Maxim Vorobyov owns 22%.

The company pays dividends quarterly. At the end of October, the board of directors recommended dividends for the first nine months of this year of 19 rubles per share. The total amount will be 1.669 billion rubles. Based on the results of the first quarter, the company paid 16 rubles per share (1.406 billion rubles) and 10 rubles (878.766 million rubles) for the first half of the year.

Inarctica is engaged in the cultivation of fish in the Barents Sea in the Murmansk region, as well as trout in the lakes of Karelia. It owns ten farms for growing Atlantic salmon and sea trout in the Barents Sea, and three sites for growing rainbow trout on Segozero in Karelia. The potential for growing fish in these reservoirs is estimated at 60,000 tonnes live weight.

The company's revenue for the first nine months of this year was 20 billion rubles, which is 10% more than in the same period last year. EBITDA decreased 9% to 9.028 billion rubles, as did EBITDA margin, to 45% from 55% last year. Over the nine-month period, the company sold 20,300 tonnes of products, a 6% increase over January-September last year.