Wellard looks to grow with listing

Wellard chief executive officer Mauro Balzarini rang the bell at the Perth ASX office on Thursday morning to mark the start of trading.

Wellard began trading at $1.39 per share and at one stage hit $1.31 before recovering to close at $1.39.

Over the week, the share price fluctuated from $1.31 to $1.45, and at the time Farm Weekly went to print on Tuesday it was trading at $1.37

Wellard lodged a prospectus last month for its initial public offering (IPO) with the Australian Securities and Investments Commission, after competing a $298.9 million initial public offering.

Mr Balzarini had hoped the company would be listed on the ASX before Christmas, and was excited about the step forward.

"We have made history," Mr Balzarini said.

"I have been told it's the fifth largest WA listing in history.

"In a time when everyone is talking about Chinese money buying the farms or agribusiness, we have demonstrated that Australian money can come into agriculture, in a business like ours."

Mr Balzarini said he was excited that Wellard would be able to step up to the "next level".

"This is about giving the business the next opportunity, so we are very positive," he said.

"We did what we did within our family means, but now it we will be much broader in terms of opportunities, networking and capital, so we are very excited about the future.

"We have always been the most transparent exporter in the industry and we will continue to do that.

"The family is very supportive, for us it's not about selling the business.

"There is some part of the business that will remain private, which will mainly be the farms.

"It is a happy time for us."

Mr Balzarini owns about 36.6 per cent of the company and Wellard management owns a 3.4pc stake.

"We have been working on this for a long time," he said.

"For us getting to the top of this mountain is the realisation that we have a spring that is loaded to catapult us to new highs.

"This is not the finish line, this is just the starting line and the start of a new life.

"We have a bigger potential and I am sure we will develop the company to new heights."

Wellard has appointed a five person board that will consist of Mr Balzarini, chairman David Griffiths, Wellard finance director and company secretary Greg Wheeler and non-executive directors Sharon Warburton and Philip Clausius.

"I think the new board is first class," Mr Balzarini said.

"It will help us add the skills that maybe we were missing in the past.

"I am very confident we will be an extraordinary company and I know we are motivated to do that."

Cattle demand has increased and Mr Balzarini said sheep exports will continue.

Wellard's abattoir, Beaufort River Meats, can process up to 2500 sheep and lambs a day, to meet customer demand for livestock and chilled and frozen meat.

"We see the demand for red meat grow every day in places like Indonesia, Vietnam and China,'' he said.

"We are very confident in that, as the demand side is phenomenal.

"We are not focused on cattle, in terms of numbers we are still exporting 400,000 sheep it's just in a different form, in carcase and live.

"I think there will be a balance with cattle and sheep as well, so we are not abandoning the sheep market, we are still interested.

"It just needs to make economic sense and animal welfare sense."

Wellard expects to commence supplying slaughter and feeder cattle into China by late next year through its joint venture with China's Fulida Group.

The Wellao Joint Venture was announced earlier this year, for the development of modern feedlots and abattoir in China to serve the growing meat market in the country.

"This is on track, but there is a lot of work to do," Mr Balzarini said.

"We are doing all that it takes to build this facility quickly.

"I think we will be running in about seven to eight months."

Wellard is also in the process of constructing a new vessel, the MV Ocean Kelpie, that can carry 10,000 cattle or 40,000 sheep, or a combination of both.

The company's flagship carrier, the MV Ocean Drover, formerly the MV Becrux, is a purpose-built livestock carrier capable of carrying 75,000 sheep or 18,000 cattle to major markets around the globe and was commissioned in 2002.

Two technologically advanced, purpose-built vessels, the MV Ocean Swagman and the MV Ocean Outback, were launched in 2010 that can transport 7000 cattle, 25,000 sheep, or a combination of both.

The MV Ocean Ute was also converted into a livestock carrier in 2010 and can transport about 5000 cattle or 20,000 sheep, or a combination of both.