NZ seafood company seeks ASX listing

New Zealand Coastal Seafoods, a Christchurch-based processor, distributor and exporter of premium seafood products, is seeking to list on the Australian Securities Exchange (ASX) by way of a “reverse takeover” of Perth-based xTV Networks Limited. 

Demand for seafood is growing in Asia said Coastal Seafoods.
 (Photo from Pixabay)

Since its inception in 2016, Coastal Seafoods said it has been profitably operating under its own proprietary brands, and focuses on processing seafood, such as ling maw, sea cucumber and soft and hard bones (such as elephant fish backbone and dogfish backbone). Coastal Seafoods' products are sold, directly and through distributors, to customers, restaurants, seafood traders, supermarkets and other retailers in New Zealand, Australia and other countries in Asia.

"Several New Zealand export-oriented food and beverage companies have listed on the ASX over the years,” said Winton Willesee, non-executive chairman, New Zealand Coastal Seafoods. 

“New Zealand Coastal Seafoods is following the path previously taken by A2 Milk, New Zealand King Salmon and, most recently, Keytone Dairy. We look forward to growing the business internationally, using the capital raised in the public offer."

Last month, the company (current ASX code: XTV and pending ASX code: NZS) lodged a prospectus with the Australian Securities and Investments Commission to raise up to A$6 million (US$4.2 million) for public offer. Once listed, the company said it will have a market capitalisation of approximately A$14.2 million.

Coastal Seafoods is also eyeing the growing demand for seafood in Asia. For example, the company said China is now the largest consumer of seafood products in the world, accounting for over a third of all global seafood consumption and projected to total over US$67.3 billion in 2019. Consumers in Asian countries increasingly have diets with high seafood content, and a growing middle class with rising disposable incomes is further stimulating demand for high-quality seafood, Coastal Seafoods explained.

As a secondary producer of seafood, the company said it has the potential to capitalise on this growing demand without the operational risks and capital intensiveness associated with being a primary seafood producer.

"We have grown substantially since our inception three years ago,” said Peter Win, CEO of New Zealand Coastal Foods. “This additional funding will assist New Zealand Coastal Seafoods with the execution of its substantial expansion and scale up plans."