Padenga came into existence after Innscor Africa Ltd transferred all the assets and liabilities of its Niloticus Division.
The listing, which will bring to 76 companies trading on the local bourse, is expected on November 29. The company announced that approximately US$400 000 would be spent on preparation and listing.
According to an abridged pre-listing statement, Padenga’s main objective of listing is to strengthen its brand in the crocodile industry globally.
“The principal reasons for the listing are to establish a strong stand alone business with a clear operational focus which is both attractive to investors and able to pursue its own independent strategy,” reads the statement. “To provide the company with the ability to undertake mergers and acquisitions with entities in the same and complementary spheres of operation with the objective of improving shareholder value… and to strengthen the Padenga brand in the crocodile industry globally.”
Padenga is engaged in the production, processing and sale of crocodile products. The company is located in Kariba.
Over the next decade, Padenga envisages growth in the luxury goods market and by virtue of its concentration on size and quality of the skins, the company says it would remain a part of the supply chain.
“As a primary producer the company loses a significant amount of value by virtue of the sale of an unfinished commodity product with limited value addition. A priority therefore is to add value to the skins produced where possible in a manner that will not compete with existing customers,” the statement added.
To achieve this objective, Padenga plans to pursue potential joint venture projects with suitable partners.
“Considerable opportunities exist to extend into the production of alligators and saltwater crocodiles in the United States and Australia respectively. Although perceived as competitors to the Nile crocodile, the skins of these two species are predominantly used in the production of different luxury accessories,” it said.
According to the statement, the recent global financial crisis had a knock on international exotic skin prices.
“Prices offered for the skins reduced by as much as 30% in the first half of the financial year ended June 30 2010. In the face of depressed world skin prices, the business has had to destock,” the statement reads. “The destocking and the depressed average skin prices resulted in the business incurring a US$1,035 million fair value lose during the year (2009:US$667 817 fair value gain) and a very small profit from operations.”