Johannesburg – Brimstone's share price has shot up by almost 10%, as demand for Sea Harvest's initial public offering (IPO) increased, resulting in R1.329bn being raised.
Brimstone Investment Corporation - which owns Sea Harvest - announced late on Friday that a strong demand for Sea Harvest shares resulted in the entity increasing the size of the share offer.
The amount was raised with the issuance of 106 333 334 shares at a price of R12.50 per share, it said. The settlement date is at the start of trade on Thursday, when the shares will be listed on the main board of the Johannesburg Stock Exchange (JSE).
Brimstone has two listings with its one [JSE:BRN] share price trading 9.68% higher at R17 a share by 11:00 on Monday and the other share [JSE:BRT] trading at R14.50.
READ: BEE a marathon, not a sprint for Sea Harvest as firm heads to JSE
The proceeds from the Sea Harvest listing, which was announced in February, will be used to repay debt and will be allocated to further investments.
Sea Harvest was first established in 1964 with operations in South Africa and Australia with leading brands in the fast-moving consumer goods sector. It is also one of the largest black-owned fishing companies in South Africa.
READ: Sea Harvest gains control of Australian company
Last year, Sea Harvest secured control of Australian company Mareterram and owns 56% of the prawn fishery.
CEO Felix Ratheb said in a statement that Mareterram’s strategy is “very closely aligned” with Sea Harvest's strategy of becoming a global vertically integrated agri-business.
This subsidiary plans to expand to China, according to Brimstone CEO Mustaq Brey. Brimstone, the majority shareholder of Sea Harvest, with a stake of 85%, reported a 22% increase in its revenue and a 147% increase in operating profit for the financial year ended 31 December 2016.
ALSO READ: Brimstone happy with results after 'perfect storm' – CEO
This follows a difficult period Brey called a “perfect storm”.
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