http://www.arafurapearls.com.auArafura Pearls 25c shares open at...

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Arafura Pearls 25c shares open at 30c, now 25.5c
11:46, Thursday, 21 December 2006

Sydney - Thursday - Dec 21: (RWE Australian Business News) -
Arafura Pearls Holdings Ltd (ASX code: APB) joined the sharemarket lists
this morning, and the 25c shares opened at 30c and fell to 25.5c.
In the first 15 minutes 822,374 shares changed hands.
The company has successfully established a 100% hatchery-based
pearl farming operation in remote Arnhem Land, in the Northern
Territory. This took eight years and $33 million of capital to achieve.
Arafura has seen a period of rapid expansion over the past
couple of years.
It has completed the acquisition of a neighbouring pearl farming
operation for about $4.3 million and quadrupled its access to Quota
(licensing system) from 40 units to 160 units.
Concurrently, harvest sizes have grown from 7300 commercial
pearls in 2004 to around 21,000 commercial pearls in 2006.

Arafura to raise $4m in IPO
17-November-06 by Andrew Hobbs

Subiaco-based Arafura Pearls Holdings Ltd aims to raise $4 million through its initial public offer to fund the purchase of a greater oyster cultivation licence quota and fleet upgrade.

Issuing 16 million shares at 25 cents each, the company was forced to undertake a $5.7 million rights issue and $1 million public issue earlier this year to fund a recovery both from cyclone damage and its debts.

The Company will seek to continued expansion through further acquisitions, joint ventures and MIS activity for future years. Increased access to capital markets via an ASX listing is expected to assist the implementation of these strategies.

Fortescue Metals Group chief executive Andrew Forrest serves as non-executive chairman of the company, with Barrington Partners and Arafura co-founder Andrew Hewitt acting as the company's chief executive. They are joined on the board by Jeffrey Mews, Christopher Cleveland and David Ledger.

The company appointed Moore Stephens Chartered Accountants as Auditor and Independent Accountant, with Capital Investment Partners acting as corporate advisers.

The offer opened today, to close on December 8.

http://www.wabusinessnews.com.au/en-story....e-4m-in-IPO/dba

Arafura closes IPO, buys $3m pearl farm
11-December-06 by Edited announcement

Subiaco-based Arafura Pearls has closed its $4 million IPO and gone ahead with the $3 million acquisition of pearl farm close to its exisiting Northern Territority operations.

The company acquired 60 units of quota and associated pearl farm about 30km from its existing Arnhem Land operations, significantly expanding its access to quota from 160 units to 220 units, providing the ability to seed 220,000 virgin shell per annum.

The purchse will be part funded by the IPO which was fully subscribed. The company will issue 16,000,000 shares at 25 cents each and expects to list on the ASX shortly, with a post-listing market capitalisation at the issue price of approximately $30 million.

Below is the full announcement:

One of Australia's leading pearlers, Arafura Pearls, closed its Initial Public Offer (IPO) on Friday following strong demand from investors, at the same time announcing a AU$3 million pearl farm acquisition to continue its rapid growth profile.

Arafura Pearls has raised AU$4 million through the issue of 16,000,000 shares at AU$0.25. The Company is expected to list on the Australian Stock Exchange in mid- December (ASX:APB) with a post-listing market capitalisation at the issue price of approximately AU$30 million.

It is set to become the first Australian South Sea pearl producer listed on the ASX.

The company also announced that the contract of sale had been signed to acquire another 60 units of quota and associated pearl farm sea Crown lease areas, approximately 30 km from its existing operations. The sale, which will be part funded by the IPO, significantly expands the company's access to quota from 160 units to 220 units, which gives it the ability to seed 220,000 virgin shell per annum.

CEO of Arafura Pearls, Mr Andrew Hewitt, said the strong response from investors meant the offer was fully subscribed.

"We've been delighted with the response from investors, who have shown a keen interest in the commercial opportunity offered by our company. Pearling has high barriers to entry, with strict quotas to ensure sustainability, and investors have recognised that this is not just a sound investment, but a rare opportunity to participate in the iconic Australian pearling industry," Mr Hewitt said.

Australian South Sea pearls are among the most sought after and valuable in the world. Australia produces less than 1% of world production in volume but accounts for nearly 30% of world production in value.

Arafura has been developing its hatchery and pearl farming operation in Arnhem Land in the Northern Territory since 1998 and is in a significant growth phase. The Australian pearling industry is controlled through a quota system to support the industry's long term sustainability. In the past 18 months Arafura Pearls has quadrupled its access to quota to 160,000 shells, making it the largest quota holder in Northern Territory and the second largest in Australia. Its harvests have been approximately 7,000 pearls in 2004, 11,000 in 2005 and 21,000 in 2006. At June 30 2006, Arafura had a maiden net profit of approximately $2.0 million, and net assets of $25.3 million.

Offer details

Initial Public Offer (IPO) raised $4 million through the issue of 16,000,000 shares at $0.25. The Offer was managed by boutique merchant bank, Capital Investment Partners.

The funds will be used to acquire a pearling operation 30kms north of Arafura Pearls including another 60,000 quota, and fund working capital.

http://www.wabusinessnews.com.au/en-story....-pearl-farm/dba