Sea Forest Limited set to list next week at $112m
A Tasmanian company which has a product that increases beef productivity while cutting greenhouse gas emissions successfully raised $20.5 million.
A Tasmanian company which is set to debut on the Australian Securities Exchange next week raised $20.5 million in a successful initial public offering (IPO).
Sea Forest Limited is a Triabunna-based company which manufactures a seaweed-derived product aimed at reducing methane emissions in cattle.
Methane, a greenhouse gas which contributes to global warming, comprises carbon and hydrogen atoms which form in a bovine animal’s stomach after it has eaten grass or other fibrous plants.
The livestock additive SeaFeed is fed to cattle via a lick block and reduces methane emissions by 80 per cent and also results in a six per cent increase in meat yield.
The fully underwritten IPO of 10.25 million shares at a price of $2.00 per share raised $20.5 million.
Sea Forest Limited is expected to begin trading its 56 million shares on the ASX on November 26 with a market capitalisation of $112.5 million.
The IPO proceeds are earmarked to fund Sea Forest’s growth strategy, including expanding production in Australia and globally, including new facilities in Queensland, NSW, WA, and South Africa
Chief executive officer and co-founder Sam Elsom said Sea Forest and SeaFeed supported a more productive and sustainable farming industry.
“We aren’t just an environmentally friendly business, we’re one that is driving measurable productivity gains at the farm gate, with a happy biproduct being that our feedstock directly leads an up to 80% methane emission reduction,” he said.
“SeaFeed is a win-win for farmers and we’re excited about the opportunity to scale and meet demand at home and abroad following our successful IPO.”
The company is led by Mr Elsom, the 2024 Tasmanian of the Year, and chairman John McKillop a former Kidman & Co chief executive under Gina Rinehart.
Sea Forest Limited’s listing comes at time when livestock producers are under pressure around the world from regulators about greenhouse gas emissions.
Australia has about 28 million beef cattle and 2.2 million dairy cattle but the Federal Government aims to reduce methane emissions by thirty per cent by 2030.
Sea Forest Limited says it has agreements to supplement the feed of approximately 100,000 head of livestock and is in discussions with producers managing an additional 700,000 head.
“Australia provides the most direct path to profitability,” Mr Elsom said of the company’s plans.
“By concentrating on the Australian domestic market in the initial phase Sea Forest expects to be able to generate meaningful revenues quickly while building a platform for future global expansion.”
Sea Forest is also seeking regulatory approvals in South Africa, United Kingdom, European Union and Brazil.
Sea Forest has supply agreements with leading livestock producers and global brands including Chadwick Consolidated Group, Teys Australia, Ashgrove Cheese, Uniqlo parent company Fast Retailing, Grill’d, Orffa, Olsson’s and Morrisons UK.
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