Investors swoop on Pure Foods Tasmania as the seafood company rejoins the ASX

Pure Foods Tasmania (ASX:PFT) witnessed solid interest from investors ahead of its re-entry to the ASX today, with the interest appearing to continue once it lit up the boards.

Pure Foods Tasmania is the reborn Bunji Corporation, which earlier this week completed the reverse takeover and an oversubscribed $3.5m raising.

The company, which owns two brands at present — Woodbridge Smokehouse and Tasmanian Pate, was targeting $3m and had the capacity to accept over-subscriptions of $500,000.

However, Pure Foods Tasmania said the offer closed with “commitments received in excess of the maximum amount offered”.

While the company has officially changed its name, it is still trading under the code ‘BCL’ until Tuesday May 5 when it will start trading under the code ‘PFT’.

Pure Foods Tasmania raised cash at 20c per share, but advanced 15 per cent to an intra-day high of 23c on its first day back on the bourse. Over 4.6m shares have been traded so far since the company made its debut at 10am EST.

However, the rebirthed company is still trading nearly 12 per cent lower than what it last traded at back in 2017.

In those days the stock was known as Baralaba Coal, which went into administration later that year after failing to complete a capital raise.

Eye on expansion

Pure Foods Tasmania has hinted it will seek to expand its portfolio through an M&A growth strategy.

Its Woodbridge business derives 60 per cent of its revenues from Asia, a market that represents significant potential for companies that capitalise on the opportunity.

Pure Foods Tasmania also says its businesses are continuing to perform strong despite COVID-19.

“We list today with a business in very good shape, despite the current environment, and a very promising outlook,” managing director Michael Cooper said.

“With the public offer complete and PFT now listed on the ASX, we look forward to building on our core competencies and market position to deliver on our strategy for existing and new shareholders.”

Last month Altor Capital portfolio manager David McNamee told Stockhead he too was confident in Pure Foods Tasmania’s success. He said this was because it had very high quality brands in markets with high barriers to entry, and were not beholden to pricing of underlying commodities.