China Fishery Group To Raise S$65.4 Million From Singapore IPOff

China Fishery Group Ltd. said Monday it will offer 57 million new shares at S$1.25 in its Singapore initial public offering and mainboard listing.

The Cayman Islands-incorporated company, which operates 34 trawlers in the Pacific, Atlantic and Indian oceans, plans to sell one million shares to the public and 56 million to institutional and other investors through a share placement.

Net proceeds from the IPO are expected to total S$65.4 million (US$40 million), with nearly S$51 million earmarked for the acquisition of new fishing and transport vessels, the company said in a statement.

Existing shareholders, including Managing Director Sung Yu Ching, will own 84.3% of the company after the IPO shares are issued.

The company expects global demand for fish to rise as a result of consumers becoming more health conscious and eating less meat.

In the nine months ended Sept. 30, the company made a net profit of US$28.7 million on revenue of US$77.3 million. For the previous full fiscal year, the company made a net profit of US$17.7 million on revenue of US$94.6 million.

The IPO, which opened Monday, closes Jan. 23, with trading on the Singapore Exchange set to commence on Jan. 25.

HL Bank, a member of the Hong Leong Group Malaysia, is manager and underwriter for the IPO.