Salmon farming centre in Chile. (Photo: Camanchaca)

After Camanchaca, DNB aims to perform further Chilean salmon firms' listings in Norway

CHILE
Wednesday, November 01, 2017, 00:20 (GMT + 9)

The world's leading aquaculture bank says that if the placement of Camanchaca shares is successful, it would increase the interest of other firms. In addition, the entity lists the benefits of being listed in the industry's main global exchange.

Norway is the main competition for Chilean salmon companies, but national firms also have a close relationship with the Nordic country by jointly developing the global salmon market. Now, local companies could find a new ally in Norway: the Oslo Stock Exchange (OSE).

Camanchaca announced in September that it was evaluating a stock market opening of its subsidiary Salmones Camanchaca in said stock market, so it delivered a mandate to DNB Markets, the investment banking division of DNB Bank ASA.

Should it materialize, it would be the first Chilean company to be listed on the world's main seafood market, but it probably would not be the only one: Blumar and Friosur also announced their interest in following in the footsteps of the firm linked to the entrepreneurs Jorge Fernández and Francisco Cifuentes.

"If the placement of shares of Salmones Camanchaca in Oslo is successful, we believe that there may be interest from other salmon companies in Chile to be listed in the same stock exchange," they comment from DNB.

"We have outlined the objective of playing a preponderant role in assisting Chilean companies in the sector to raise liquidity in international markets and thus be able to finance profitable growth projects," says the entity.

Why so much interest of the Chilean salmon companies to be listed in Norway? There are several benefits, they argue from the Norwegian bank.

On the one hand, there is a growing trend for companies that are listed on the world's leading aquaculture stock exchange -- measured in terms of market capitalization and number of listed companies -- to receive more direct attention from investors versus firms that are listed on the Santiago Stock Exchange. "The foregoing is evidenced by the greater number of shares traded daily and also, by the greater coverage of expert analysts in the sector", they detail from the bank, adding that "these companies can expect greater liquidity in their shares".

Additionally, they highlight that "the universe of investors is highly sophisticated" in the Nordic market. Thus, considering the positive trend of the aquaculture sector, they are grateful to have diversification alternatives in the Chilean salmon market, points out the entity.

Another of the benefits mentioned by DNB for the salmon companies that make an opening in the main stock market of Norway, is that "the efficient regulation of the stock market of Oslo, allows to count on a little bureaucratic market that is accessible to any interested party from the point of view of costs".

In this way, the benefits would be several: "Chilean salmon companies could finance their investment and growth plans through the capital market of Oslo, considering competitive valuations, but in turn, allowing their shareholders to maintain control over them. After several difficult years in the industry, some counterparts could consider reducing their level of indebtedness through the placement of shares," they point out.

Finally, DNB highlights that access to fresh capital through the stock market of the Oslo stock exchange allows access to the Nordic bond market, "which has proved to be very competitive in terms of structure, price and processes".

Source: Mariana Marusic / Pulso

Related articles:

- Other salmon companies could follow Camanchaca and open to Oslo Stock Exchange
- Camanchaca negotiates and 'polishes' USD 165 million refinancing proposal
- Camanchaca assesses placement of subsidiary on Norwegian Stock Exchange 

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