Oslo, Norway-based marine ingredients company Aker BioMarine AS has engaged Arctic Securities AS, DNB Markets, and Skandinaviska Enskilda Banken AB as joint bookrunners to assist it in a contemplated private placement of new shares, followed by a listing of its shares on the Oslo Stock Exchange’s Merkur Market.
The Aker ASA subsidiary, which was established in 2006 and specializes in krill harvesting and processing, then intends to proceed with a full listing on the Oslo Børs in the first quarter of 2021.
“Aker BioMarine is a positive value trigger in Aker’s portfolio of industrial investments,” Aker ASA President and CEO Øyvind Eriksen said. This is the result of a long-term commitment to Aker BioMarine and is a diversification within a core area for Aker in a fast-growing marine ingredients market. Aker and the company have invested significantly in building a fully integrated value chain, forming the basis for profitable and sustainable growth.”
The private placement comprises an offering of up to 18,532,542 new shares, raising gross proceeds of up to approximately USD 225 million (EUR 200.7 million). It will result in a free float of approximately 21 percent.
According to Aker, the private placement has received “significant interest from high-quality institutional investors,” and “multiple tier-1 institutions in the Nordics and in the U.S. have pre-committed to subscribe for a substantial amount.”
It intends to use the net proceeds from the new shares issue to strengthen its balance sheet. This includes the repayment of a shareholder loan to Aker ASA of approximately USD 90 million (EUR 80.3 million) plus accrued interest, as well as increasing its flexibility for growth investments, and for general corporate purposes.
Shares will be offered at a price of NOK 115.85 (USD 12.14, EUR 10.83) per share, with the price corresponding to a pre-money value of the equity of the company of approximately NOK 8 billion (USD 838.4 million, EUR 746.6 million).
The final number of offer shares will be determined by the company in consultation with the bookrunners after completion of the application period, which commenced on 19 June and is currently scheduled to close on 26 June, 2020.
Subject to completion of the private placement, the expected first day of trading will be on or about 6 July, 2020.
“Aker BioMarine is experiencing increased interest in the capital market. Following a strategic review with input from potential investors, Aker considers the timing of a private placement to be a natural next step in the development of the company. Not only will it enable the company to finance growth investments and pursue growth opportunities, but the transaction will also diversify its shareholder base as we enter the next phase of Aker BioMarine’s growth and value creation,” Eriksen said.
In 2019, Aker BioMarine delivered revenues of approximately USD 246 million (EUR 219.4 million) in 2019 and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately USD 53 million (EUR 47.3 million), representing a growth of 60 percent and 36 percent from 2018 respectively. The company’s Q1 2020 revenues totaled USD 71 million (EUR 63.3 million), up from USD 39 million (EUR 34.8 million) in the corresponding period of last year.
