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All in the name of raising the stock price, among others.
China Fishery this morning announced that it would be seeking a secondary listing on Oslo Børs, making it the first Singapore Exchange-listed company to do so.
And the reason? “It is expected to increase shareholders’ value and enhance visibility of China Fishery,” it said.
Just two weeks ago, this company was highlighted by DBS Vickers Securities as among a handful of Singapore listed companies which could be seeking a dual listing. (For who the other names are, see our report S-CHIPS: Possible dual listing candidates)
China Fishery (www.chinafisherygroup.com) proposes to issue an as yet unspecified number of new shares for the Oslo listing, targeting institutional investors internationally as well as to retail investors in Norway.
The halibut fish is among a key catch of China Fishery. Internet photo.
For the share issue, China Fishery will seek a general share issue mandate from its shareholders at its Annual General Meeting this Friday (22 Jan).
Group Managing Director Ng Joo Siang said, “China Fishery gained a strong foothold in the South Pacific in 2009, while our North Pacific and Peru operations have been delivering sustainable growth. A dual listing is strategically timely for the Group now as we enter our next phase of growth.”
On the benefits of a listing in Oslo, he gave the following:
* Firstly, Oslo Børs is a well recognised stock exchange and is the leading place for companies in the fishing and seafood industries to list. China Fishery will be able to tap into a pool of potential investors who know and appreciate the industry it is in.
* Secondly, the listing will enable it to raise its company profile in Norway and Europe, where many of its customers and business partners are located.
* Thirdly, there will be increased visibility and shareholder base of China Fishery, enabling it to better attract European institutional investors as well as allowing China Fishery's shares to trade in two different time zones.
”We believe that this will lead to improved liquidity in the trading of shares in China Fishery, and potentially an increase in existing shareholder value.”
