Oyster farmer Angel Seafood slips 20pc on ASX debut
Food & Agriculture
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Organic oyster farmer Angel Seafood closed down 20 per cent on its ASX debut on Wednesday.
Shares in the company (ASX:AS1) — claimed to be the world’s only certified sustainable and organic oyster producer — closed at 16c, down from its issue price of 20c.
The shares recovered slightly on Thursday morning to trade at 17.5c at 10.40am AEDT.
Angel raised $8 million in its IPO, in a bid to expand operations and cement itself as the key producer of South Australia’s famed Coffin Bay oysters.
In an update to market, it told investors the stock of its aphrodisiac molluscs was nearing maturity – with more than 8 million oysters on hand after significant growth over the summer.
Juvenile oysters – referred to as ‘spat’ – are grown at water leases in Cowell before being moved to the eponymous Coffin Bay.
But diners just need to be patient. The oysters take 18 months to grow and won’t be hitting plates with full gusto until April, after supply constraints over the past 12 months.
Lucky for AS1, the disease has not stretched further north, and the company remains untouched by mortality events so far for the summer.
Angel owns or leases 41 hectares across South Australia and has agreements to acquire a further 10 hectares.
“Angel is growing in a unique industry that is still in its infancy in South Australia having been established less than 30 years ago on the Eyre Peninsula,” the Angel prospectus said.
“The board believes that the local industry is currently fragmented and under-capitalised which presents a compelling case for acquisitions and future efficiency.”
The family company incorporated in 2016 to take on what has become a $35-40 million industry in South Australia alone.