Ann: Timpetra lodges Replacement Prospectus, page-3

Is this the one?

With the pre-Christmas IPO pipeline looking more replete than Santa’s workshop, only one of the eclectic array of offerings can claim to have cod on its side.
Citing “expressions of interest much higher than share availability”, Murray Cod Australia is likely to close its $10 million raising ahead of Friday week’s closing date and a January backdoor listing via Timpetra Resources.
Murray Cod Australia chairman Ross Anderson cites increasing recognition in culinary circles, with top nosheries such as Quay and The Dining Room serving the white-fleshed species despite erratic and limited supply.
“With Murray cod there is no wild catch allowed and they don’t grow in any other waterway other than the Murray Darling Basin,’’ he says.
The new entity will amalgamate three established businesses: nursery Bidgee Fresh, grow-out farm Riverina Aquaculture and hatchery Silverwater Native Fish.
Dubbed “pigs of the waterway” for their bottom-feeding habits, Murray cod are able to survive in conditions ranging from freezing headwaters to a small puddle upriver.
“What makes Murray cod really good is that they have evolved over 50 million years to survive in a range of temperatures,’’ Anderson says. “We have a native fish growing in a natural environment.’’
Despite the investor interest, Murray Cod Australia may well need help from the piscatorial gods, given the tendency of listed aquaculture plays to sink without trace.
Casualties include barramundi grower Australia Aquaculture and Western Kingfish, while the Port Lincoln-based Clean Seas struggled to breed southern Bluefin tuna in captivity.
In Tasmania, salmon producers including the listed Tassal Group and Huon Aquaculture have been put on notice to reduce stock levels in Macquarie Harbour, amid concerns about water quality.
“We have studied many of the mistakes and problems others have had,’’ Anderson says. “We are not sea-based and we are not doing anything experimental. We have identified and controlled all the risks around us.’’
Anderson says most of the setbacks have related to disease or lack of dissolved oxygen in the water. Because the company’s dams are land-based, there are fewer issues with water and effluent run-off.
To date, the Murray cod market has been negligible, with local consumption of around 100 tonnes a year compared with 21,000 tonnes for barramundi, the nearest comparable fish.
Of this, 15,000 tonnes are imported from Asia. Initially, Murray Cod plans to produce just over 100 tonnes annually, rising to 5000 tonnes within five years.
“We got an order for 500 tonnes from an Asian hotel chain, which we had to turn down but we would really have loved to have supplied,’’ he says. “We don’t think selling the fish is really an issue.’’
Murray Cod Australia is one of at least 30 entities testing investor appetite for a raising ahead of Christmas, including cobalt and lithium explorers, a woodchip exporter and a Chinese orchard consolidator.
The biggest, the listed investment company Watermark Global Leaders Fund, is expected to list on December 21, having exceeded its $40m minimum subscription, raising at least $110m.
Geelong-based woodchip exporter Midway is slated to list on Thursday, having raised $40m.
After-market automotive products group Automotive Solutions lists on Friday, having raised $25m.
“It’s a function of a number of things,’’ says Perth-based company director Howard Digby says of the IPO rush.
One is simply timing as people try to get everything done by the end of the year.
“Australia goes to the beach in January so you need to get your ducks in a row.’’
Digby is the chairman of social app developer HearMeOut, the latest of several Israeli early-stage tech companies to opt for an ASX listing over funding options such as US venture capital.
Digby says an ASX listing should not be seen as an easy option for foreign start-ups.
“We’re subject to the same corporate governance standards as BHP and that’s kind of nice.’’
Others are avoiding the Christmas rush and opting to list in the new year. These include waste plastic to diesel green energy play Foy Group.