Analyst doubts there will be more Chilean salmon companies on the Oslo Stock Exchange

Andreas Witzøe

Seafood analysts Alexander Aukner in DNB Markets and Carl-Emil Kjølås Johannessen in Pareto are impressed by Salmones Camanchaca’s stock market development after the company’s 2018 listing. But they believe it remains to be seen whether more non-Norwegian companies will follow in Chile’s footsteps.

The Vice President of Salmones Camanchaca, Ricardo García, believes the stock exchange reception in Norway has exceeded all their expectations. Johannessen is impressed by the development the stock has had in 2018.

“The fact that the stock would almost double from the price at which it was listed at is impressive. I don’t think many expected that, so you can say that it has exceeded all expectations,” he said.

But in relation to the estimates he is not as convinced.

“We now estimate that the company will deliver a 2018 EBIT of USD 72 million. That is quite in line with what we expected for the IPO,” said Johannesen.

Not surprising
Alexander Aukner agrees with Johannesen.

“The stock has been very strong since the listing and has made it even better than the seafood index. The industry is served by good and stable biology in Chile, so the Chileans have good reasons to be happy with the year that has passed,” said Aukner.

“Given that the company has a higher operational leverage than the Norwegian companies, in addition to Chile really delivering on the biological, it is not so surprising that Salmones Camanchaca has done well,” added Aukner.

Believe in several IPOs, but hardly from Chile
“The fact that Oslo Stock Exchange is the stock exchange for seafood companies I think most people agree on, and Salmones Camanchaca’s entry has probably only reinforced this impression,” said Johannessen.

He believes more seafood companies will be listed in the future, but doubts that there will be any more from Chile.

“If there are any more from Chile, time will tell. But the probability has fallen when both AquaChile and Australis are no longer so relevant,” said Johannessen.

His competitor in DNB Markets is of a similar opinion.

“Regarding the effect of Salmones Camanchaca’s listing on the stock exchange, it is once again clear that foreign salmon companies can do well on the Oslo Stock Exchange, which is evidence of both Bakkafrost and Salmones Camanchaca. If more companies will go on to list as a result of this remains to be seen, but the journey that Salmones Camanchaca and the investors have been involved in, at least makes it no less likely that more companies will want to explore the possibility of listing in Norway,” said Aukner.


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