Minnesota-based indoor shrimp farming company Tru Shrimp has postponed its initial public offering just weeks after taking the first steps toward putting the company on the stock exchange.
Minnesota's Tru Shrimp postpones IPO
The aquaculture company cited 'adverse market conditions' in delaying its plans.
February 15, 2022 at 2:22PM
"Tru Shrimp made the decision based on adverse market conditions and will continue to evaluate the timing for the proposed offering," the company said in a news release last week.
Earlier this month the Balaton, Minn.-based aquaculture firm set a target price for the 1.5 million shares it would be offering at between $9 and $11 per share.
The postponement follows a number of other delayed IPOs nationally as companies wait for less volatile market conditions. A stock index that tracks newly listed companies, the Rennaisance IPO Index, has lost 18% of its value this year, compared to an 8% drop in the S&P 500 since Jan. 1.
Tru Shrimp intended to break ground this year on a $90 million facility in Madison, S.D., that would produce shrimp and a valuable byproduct, chitosan. At full production, the company expects to grow 1.3 million pounds of head-on, shell-on shrimp annually, which equals 790,000 pounds of processed shrimp, according to a securities filing.
The Birds Eye plant recruited workers without providing all the job details Minnesota law requires.
