Atlantic Sapphire (Buy, TP: NOK140.00) - Securing funding for phase 2
Atlantic Sapphire has announced the long-awaited capex budget for phase 2, which is USD210m versus our estimate of USD150m. The company raised USD120m in new equity through a private placement at NOK98.6/share, a zero discount to the closing price. We have lifted our capex budget for phase 2 and beyond to reflect raw materials inflation in addition to adjusting our model for the new shares and cash. We have cut our target price to NOK140 (170) and reiterate our BUY.Atlantic Sapphire AS. Atlantic Sapphire AS is a Norway-based company, which farms Atlantic salmon in land-based recirculating systems in Denmark and the United States. The Company uses the production technology Bluehouse, which comprises the entire production cycle - from an egg hatchery to harvested fish ready for truck pick-up. Also, the Bluehouse implies production free of antibiotics, hormones, pesticides, metals and synthetic pigment. The product portfolio includes whole fish, as well as a range of fillets and cuts. The customers comprise primarily restaurants and retail stores on the Unites States market. Also, the Company exports products to such markets as Canada, Chile and Europe.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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