Press release
Hamburg, 24. April 2012

Haikui Seafood AG announces IPO details

  • Price range between EUR 10.00 to EUR 13.00
  • Offering volume of up to 1,725,000 shares
  • Company intends to raise gross proceeds with the sale of New Shares of up to EUR 19.5 million

Haikui Seafood AG, an established seafood processing company operating in international markets and China, is offering up to 1,500,000 shares for its IPO on the Prime Standard of the Frankfurt Stock Exchange. The shares originate from a capital increase. The public offering in Germany and Luxembourg additionally includes an over-allotment option of up to 225,000 shares from two existing shareholders. The price range for the shares is between EUR 10.00 and EUR 13.00. The offer volume would lead to maximum proceeds of EUR 22.4 million, of which a maximum of EUR 19.5 millions would relate to the sale of New Shares.

“The offering provides investors with a good opportunity to profit from the intended growth of Haikui, which the investors directly support by investing in our company”, says Chen Zhenkui, CEO of Haikui Seafood AG.

Haikui plans to use the net proceeds from the sale of New Shares of approximately 55-75% to support certain investments, especially the partial financing of a new factory near to its current processing facilities on Dongshan Island in the Southeast of China, Fujian province. In addition, around 25-45% of the net proceeds shall be used for general working capital purposes. All current shareholders have agreed to a hard, respectively soft  lock-up period of 12 months from the first day of trading. The soft lock-up agreement enables the shareholders to sell their existing shares only with the Joint Lead Managers consent.

The book building period starts on 24 April 2012 and is expected to end on 10 May 2012 at 12:00 CEST for retail investors and 4:00 pm CEST for institutional investors. The initial listing on the Prime Standard of the Frankfurt Stock Exchange is scheduled for 15 May 2012. The IPO prospectus was approved by BaFin and published on the website of Haikui Seafood AG at on 23 April 2012.

Substantial growth during the past three years
With its balanced business model, which serves the Chinese market for branded and white label products as well as the international market for white label products, Haikui Seafood achieved sales of EUR 152.1 million in 2011. The profit from operations (EBIT) reached EUR 34.0 million. The net profit amounted to EUR 28.3 million, representing a net profit margin of 18.6%. During the past three years, Haikui Seafood achieved a compounded annual sales growth rate of 26.8% and a net profit growth of 25.4%.

The Offering consists of a public offering in Germany and Luxembourg and private placements to institutional investors outside Germany, Luxembourg and the United States of America. Joint Bookrunners and Joint Lead Managers of the transaction are BankM – representative office of biw Bank für Investments und Wertpapiere AG from Frankfurt/Main and Pareto Securities AS from Oslo, an investment bank owning special expertise in the seafood industry. Selling agents are Cortal Consors S.A., DAB Bank AG, flatex AG, ING-DiBa AG, S Broker AG & Co. KG and ViTrade AG.

Haikui Seafood AG: ISIN / WKN / Ticker: DE000A1JH3F9 / A1JH3F9 / H8K

About Haikui Seafood AG
Haikui Seafood AG processes fish and seafood for the Chinese and international markets. The product portfolio comprises more than 100 different products from frozen or canned fish and seafood, produced from a large variety of species of raw fish and seafood, including prawn, crab, various fish species and shellfish as well as cephalopods. Clients of Haikui Seafood are distributors in China and overseas, located mainly in Asia, the U.S and Europe. Haikui Seafood employs around 600 permanent employees and on average around 1,600 additional temporary workers. The Company has an annual processing capacity of around 28,500 tons (output). The processing facilities are located in the South-East of China on Dongshan Island, Zhangzhou, Fujian Province. The Haikui-Group operates a streamlined supply chain including self-owned processing facilities, in-house research and product development capacities as well as warehouses and cold storage facilities, while simultaneously cooperating closely with raw goods suppliers.