Investors have shown faith in Abundant Produce, with shares in the vegetable seed breeder rising A$0.10 on its first day of trading on the Australian Securities Exchange (ASX).
The company listed on the ASX at A$0.45 per share, with that value climbing to A$0.55 by the close of trade.
The encouraging debut followed the success of an initial public offer, which saw 17.5m shares in Abundant Produce purchased at A$0.20 per share, generating an implied market capitalisation of A$9.3m.
Abundant Produce is Australia’s only listed agricultural IP seed company. It operates out of Cobbitty, New South Wales, where it breeds vegetable seeds in partnership with the University of Sydney’s Plant Breeding Institute.
The company specialises in breeding hybrid greenhouse vegetables, which it claims have better yield, disease resistance, temperature tolerance, taste, texture, colour and shape.
“Our seeds grow well in low-tech environments and exceptionally well in controlled greenhouse conditions,” said Abundant Produce research director Graham Brown. “The harsh conditions of the Australian environment allow us to identify the strong, resistant and bountiful plants.”
Abundant Produce has commercial cucumber seed sale arrangements in place with several high-profile customers internationally and in Australia. The company is also targeting established greenhouse markets and new growth areas in Southeast Asia.
“We are mainly breeding vegetables that can thrive in areas that have harsh climates and a proliferation of greenhouses,” said Brown added. “Our varieties will put up with extremes of temperature and also grow better in controlled environments, so our seeds can sell to open and simple greenhouse farmers as well as to operators of complex and expensive greenhouses. We are targeting diverse growing environments, from controlled greenhouses in Europe and the US, to open-field, low-tech facilities in China and India.”
