Sea Forest Limited launches a $20.5 million IPO on the ASX to scale production and commercialisation of SeaFeed™, a scientifically validated livestock feed additive that cuts methane emissions by up to 80% while boosting productivity.
- IPO to raise $20.5 million at $2.00 per share
- SeaFeed™ reduces ruminant methane emissions by up to 80%
- Commercial supply agreements with major Australian and international livestock producers
- Plans to expand production facilities across Australia and South Africa
- Pro forma cash position of $31.4 million post-IPO
Sea Forest’s Climate-Positive Innovation
Sea Forest Limited, an Australian agri-tech company pioneering methane abatement in livestock nutrition, has announced a $20.5 million initial public offering (IPO) on the Australian Securities Exchange (ASX). The company is offering 10.25 million new shares at $2.00 each, aiming to accelerate the commercialisation and global expansion of its flagship product, SeaFeed™.
SeaFeed™ is a proprietary livestock feed additive derived from the bioactive compounds of Asparagopsis seaweed. It has been scientifically proven to reduce methane emissions from ruminant animals by up to 80%, while simultaneously improving feed conversion efficiency and increasing saleable meat yield by over 6%. This dual benefit addresses both environmental and economic challenges faced by the livestock industry.
Strategic Growth and Market Traction
Founded in Tasmania in 2018, Sea Forest operates research and production facilities in Triabunna and Swansea, Tasmania, with marine leases spanning 1,800 hectares. The company is transitioning from seaweed-derived formulations to a manufactured, nature-identical bioactive product, enhancing scalability, consistency, and cost efficiency.
Sea Forest has secured commercial supply agreements with major Australian livestock producers such as Chadwick Consolidated Group, Teys Australia, and Ashgrove Cheese, supplementing approximately 100,000 head of livestock. Additionally, the company has established partnerships with supply chain integrators and downstream corporate customers, including Olsson’s, Orffa, Fast Retailing Limited (Uniqlo), Grill’d, Mars Inc., MJ Bale, and Mitsui & Co (Australia) Ltd.
Internationally, Sea Forest is pursuing regulatory approvals and market entry in key regions including the United Kingdom, European Union, South Africa, and Brazil. The company leverages strategic distribution networks, such as Orffa’s extensive presence in Europe and South Africa, to facilitate market penetration.
Financial Position and Use of IPO Proceeds
Sea Forest reported net losses of $7.2 million, $6.9 million, and $9.1 million in FY23, FY24, and FY25 respectively, reflecting its growth and commercialisation phase. Post-IPO, the company’s pro forma cash position is approximately $31.4 million, providing a solid financial foundation to execute its growth strategy.
The IPO proceeds will be primarily allocated to capital expenditure for expanding production facilities in Queensland, New South Wales, Western Australia, and South Africa. Additional funds will support ongoing product innovation, regulatory approvals, marketing efforts, working capital, and offer-related expenses.
Intellectual Property and Competitive Position
Sea Forest holds proprietary intellectual property, including multiple patent applications covering its manufacturing processes and feed additive formulations. The company licenses key technology from Future Feed Pty Ltd and the University of the Sunshine Coast, enhancing its product pipeline for both ruminant and non-ruminant applications.
In a competitive landscape featuring players like Bovaer (DSM Firmenich) and Agolin Ruminant (Alltech), Sea Forest distinguishes itself with the highest proven methane abatement efficacy and validated productivity gains, supported by 38 peer-reviewed scientific studies.
Risks and Governance
Sea Forest acknowledges risks typical of early-stage agri-tech companies, including commercialisation challenges, customer contract uncertainties, regulatory approval delays, and operational risks related to aquaculture and infrastructure expansion. The company’s board comprises experienced executives and independent directors with deep expertise in agriculture, sustainability, and corporate governance.
The IPO is fully underwritten by Ord Minnett Limited, ensuring capital raising certainty. Existing shareholders will hold approximately 81.7% of shares post-IPO, with most subject to escrow arrangements to support market stability.
Bottom Line?
Sea Forest’s IPO marks a pivotal step in scaling a breakthrough methane-reducing feed additive, with market adoption and regulatory milestones set to define its next growth chapter.
Questions in the middle?
- How quickly will Sea Forest secure regulatory approvals in key international markets like the UK and EU?
- What is the timeline and scale for the planned production facility expansions across Australia and South Africa?
- How will Sea Forest navigate competitive pressures and pricing negotiations with large livestock producers?