AquaChile Set for IPO

AquaChile is expected to announce the pricing for its IPO today, targeting $350m-$400m equivalent. The Chilean fishery hopes to sell 387m shares, according to regulatory documents, about a 36% float. Analysts’ pricing expectations center in the range of CLP460-CLP480, which would mean a CLP178.0bn-CLP185.8bn ($380m-$396m) deal. BCI estimates a fair value of CLP583 per share, it says, and recommends paying no more than CLP476, representing a 15% discount. The country’s largest salmon company offers industry leadership, vertical integration, and product and client diversification, it says. Fellow brokerage Security spots fair value at CLP528, with a 12-month target of CLP574, and recommends buying at CLP475. “We see the company facing a positive growth scenario, even though it remains subject to ongoing risks and a more strict regulation, which could impact results,” Security says. Celfin sees fair value at CLP510, and recommends subscribing up to CLP465. Chile’s fish industry suffered a disease crisis in 2007-2009 and is now emerging from the crisis with stronger regulations in place that should strengthen the industry and prevent a reoccurrence, Celfin notes. AquaChile is raising funds to fuel its $470m plan to re-grow production to 173,000 tons per year by 2016. Banchile and IMTrust are managing the sale, to be the second IPO in Chile of 2011, with pharmacy Recalcine raising CLP172.72bn earlier this month. Fellow fishery Camanchaca brought the only Chilean IPO of 2010, raising CLP109.1bn.