Brimstone shares soar on strong demand for Sea Harvest IPO (57% owner of Mareterram).
Johannesburg – Brimstone's share price has shot up by almost 10%, as demand for Sea Harvest's initial public offering (IPO) increased, resulting in R1.329bn being raised.
Brimstone Investment Corporation - which owns Sea Harvest (who owns 57% of Mareterram) - announced late on Friday that a strong demand for Sea Harvest shares resulted in the entity increasing the size of the share offer.
Last year, Sea Harvest secured control of Australian company Mareterram and owns 57% of the prawn fishery.
CEO Felix Ratheb said in a statement that Mareterram’s strategy is “very closely aligned” with Sea Harvest's strategy of becoming a global vertically integrated agri-business.
This subsidiary plans to expand to China, according to Brimstone CEO Mustaq Brey.
Brimstone, the majority shareholder of Sea Harvest, with a stake of 85%, reported a 22% increase in its revenue and a 147% increase in operating profit for the financial year ended 31 December 2016.
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Sea Harvest has recently said the more than $100 million raised will be used to target further acquisitions, including for Mareterram, and it is probable they will use Mareterram as their vehicle for the push into China.
Big things ahead me thinks.
Well done to the Sea Harvest IPO team.
This should give Mareterram a great boost along. The next acquisition is right around corner, as is the marketing and expansion into China.
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