Sydney-based oyster farming operation East 33 is understood to be moving forward with plans for its initial public offering, with advisory firm Shaw and Partners believed to be firing the starting gun on its management roadshow in about a fortnight.

The move comes after it hit the pause button on its float plans last year.

East 33 describes itself as the leading producer and supplier of Sydney rock oysters and has plans to raise about $32m at 20c a share.

The group, co-founded by executive chairman James Garton, will have a market value of about $100m once listed as it looks for more funding in its quest to make acquisitions to become one of Australia’s largest oyster producers and suppliers.

While the company is Sydney-based, the oysters are commercially farmed at 41 locations along the NSW coast. East 33 has aspirations to grow its earnings before interest, tax, depreciation and amortisation to $8m, from $5m last financial year.

In a recent statement, East 33 said about 85 per cent of Sydney rock oysters were historically consumed in NSW, but a lack of scale and vertical integration had led to underinvestment in the industry, despite 23 per cent growth in the price of oysters over the past five years.

In support of the float, East 33 has already secured $10m in senior debt funding from National Australia Bank.

Once listed, East 33 will have former Louis Vuitton executives Philip Corne and Kara Hurry on the board, as well as marketer Georgina Williams.

Article source: The Australian, 5 April 2021