Four years after first making moves towards listing its business on the Australian Securities Exchange, SunRice has finally made the transition, with a bang.
The company's share price jumped almost $2 in the first day of trading to $8.30.
Trading in SunRice's $381.7 million of publicly listed stock commenced on Monday with chairman, Laurie Arthur, and managing director, Rob Gordon, ringing the bell to open trade at the ASX.
The former grower co-operative's 58.7 million shares had made the transition from the smaller capital National Stock Exchange, where its B-class stock has traded for the past 12 years, and closed on Friday valued at $6.50.
As if anticipating this week's successful move, the NSX share price had climbed 30 cents in its final week of trading, having dipped to $5.50/share in late February.
Following its impressive ASX debut, SunRice is now trading at about 15 times its net profit compared to about five times when it shed its co-op status to list on the NSX in the depths of the Millennium Drought.
Leading shareholders
Southern NSW-based SunRice's biggest B-class shareholder is Victorian-based Julian Menegazzo and family, whose Menagazzo Enterprises at Werribee controls a five per cent stake in the company's listed capital.
Other Menagezzo families and their businesses rank among the company's top 10 shareholders, including G.M. Menegazzo's Dellapool Nominees, J and C Menegazzo and family's Taurian Limited, and the Leanne Menagazzo family's Industry Designs.
Stockbroker Colin Bell's Burrabogie Pastoral Company-based business, Australian Food and Agriculture has the second largest SunRice share stake at just over 4pc.
Former SunRice chairman Gerry Lawson's family, with 0.56pc of SunRice's B-class shares, was the company's 13th largest shareholder prior to the ASX listing.
The farmer-owned marketing and processing business remains grower-controlled via a dual class share structure which allows individual growers to hold up to five A-class shares each and control the election of directors to the board.
A-class shares cannot be traded and a 10pc share ownership cap applies to all B-class shareholders.
Directors, who initially proposed a more complex listing structure in 2015 before shareholders voted for the current arrangement last year, expect the ASX listing will give SunRice much better access to funding from outside the industry, when it is required.
We have a diverse portfolio of businesses and strong track record in innovation and commercialising value-added rice products in high-growth global markets
- Laurie Arthur, SunRice
The company said the new market listing would ensure shareholders access to a more liquid investor market into which they could trade shares, and help deliver on the company's 2022 Growth Strategy.
The strategy is a five-year roadmap which is capitalising on bullish global food trends and SunRice's competitive advantages in the world's most popular human consumption grain market.
Now in its third year, the strategy aims to increase paddy prices for rice growers and create greater better shareholder value.
SunRice has 11 businesses within its group spanning a diverse footprint from snack foods to stockfeed processing and rice mills in the USA, Jordan, Vietnam, Papua New Guinea, North Queensland and the Riverina.
It is considered one of Australia's best known international brands, boasting a range of almost 700 products, including table rice, flour, rice meals, food service ingredients and pet foods.
"From our foundations as a rice processor and marketer 70 years ago, SunRice is today a $1 billion Australian icon and one of the largest branded rice companies in the world," said chairman, Mr Arthur.
"We have a diverse portfolio of businesses and strong track record in innovation and commercialising value-added rice products in high-growth global markets.
"The evolution of SunRice continues with our listing on the ASX and we look forward to securing a stronger future for all our stakeholders and the Australian rice industry."
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Mr Gordon said the company's growth strategy was focused on reducing business risk and building resilience.
"This is especially important for agricultural companies like SunRice that are exposed to cyclical conditions, such as those currently being experienced in the Riverina by our growers and employees," he said.
"The strategy is designed to accelerate the SunRice Group's growth into a strong and enduring global business to the benefit of shareholders, growers and employees."
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