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- Olive oil producer Cobram Estate Olives Ltd will debut on the ASX on Wednesday under the code CBO
- The company produces oil for the Red Island, Cobram Estate and Wellgrove brands
- It has more than 2.4 million olive trees on 18,000ha and is looking to grow its operations
- Cobram did not take the opportunity to raise IPO capital
- A raising was considered at a bottom price of $2, but it was decided that the market should first establish the stock’s valuation
Olive oil producer Cobram Estate Olives Ltd will debut on the ASX on Wednesday under the code CBO.
Since Paul Riordan and Rob McGavin started growing olives in Victoria in 1999 and acquired Cobram in 2006, the unlisted public company has grown to hold more than 2.4 million olive trees on 18,000ha.
It also has three olive oil mills, two bottling and storage facilities where the company produces oil for its Cobram Estate and Red Island brands. The company also sells olive-related health products under the brand Wellgrove.
Cobram has another 300ha of olive trees in California and export customers in 17 countries.
Mr McGavin is Cobram’s Chair.
“Today we have more than 2.4 million olive trees planted in Victoria and, this year, we estimate we’ll produce 71 per cent of Australia’s olive oil crop,” he said.
Cobram already has more than 850 shareholders – including the founders and employees.
But liquidity of those shares hasn’t been easy for the investors, which is a key reason for Cobram stepping onto the ASX.
“With more than 850 existing shareholders, listing on the ASX is a natural progression that will allow our investors better liquidity,” Mr McGavin said.
“As well as providing a liquid market for the company’s shares and offering additional financial flexibility to access capital markets and pursue growth opportunities, the listing has also provided the company with an opportunity to reward eligible employees with a gift offer of 500 shares in recognition of their incredible contribution over many years.
“Importantly, after listing, the company will continue its tradition of offering shareholders first access to our limited release highest quality olive oil.”
Cobram will look to grow its operations in California. However unlike most companies that list on the index, Cobram did not take the opportunity to raise IPO capital.
Mr McGavin said a raising was considered at a bottom price of $2, but it was decided that the market should first establish the stock’s valuation.
“Paul and I are so proud of what we’ve achieved in the past two decades with Cobram Estate Olives and are excited about its future,” he said.
“In the next 10 years, our fully productive Australian groves are set to increase by another 3000 hectares, largely from trees already planted.”
A prospectus can be viewed on the company’s website at https://cobramestateolives.com.au
CBO lists on the ASX from 11am AEST on Wednesday, August 11.
