Olswang advises Chinese seafood supplier on AIM IPO

This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.

International technology, media and telecommunications law firm Olswang has advised Aquatic Foods Group Plc (Aquatic Foods or the company), a marine foods and seafood supplier based in China and registered in Jersey, UK, on its admission to trade on the London Stock Exchange's Alternative Investment Market (AIM). Ahead of its initial public offering (IPO), the company raised a total of £9.3 million and has a market capitalisation on admission of approximately £79.3 million.

Aquatic Foods seeks to address a global, health-conscious consumer base by offering sustainable, internationally sourced deep-sea marine food, such as processed frozen seafood, seaweed-based foods and marine snacks. The company operates through two key brands: "Zhenhaitang," servicing 50 regional distributors covering 16 provinces, municipalities and autonomous regions in China, and "Kanwa Foodstuffs," which delivers to international markets.

The Company has experienced considerable growth in recent years: between 2011 and 2013 turnover increased from Renminbi (RMB) 276.4 million to RMB 667.3 million and net profit rose from RMB 38.2 million to RMB 118.6 million.

Li Xianzhi, Chief Executive Officer of Aquatic Foods Group Plc, commented: "By joining AIM, the company will be able to benefit from new opportunities, and we'll be able to further increase consumer confidence in our products. We look forward to a successful future for the Company on AIM, and we thank Olswang for their excellent leadership and incredible support of our IPO in London."

Olswang Corporate Partner Azlinda Ariffin-Boromand said: "We were pleased to lead the team of lawyers in China, Hong Kong and Jersey that saw this international AIM IPO to fruition. Olswang is always pleased to work with like-minded clients, and Aquatic Foods shares our commitment to growing its business internationally. We were also particularly pleased to work on behalf of a company that values delivering its goods in an environmentally sustainable way."

The team was led by Corporate Partner Azlinda Ariffin-Boromand and supported by Associate Nicole Gyring-Nielsen and Trainees Ariana Gale and Natalie Coan.