By Stuart Condie

SYDNEY--Shares in an Australian company that produces seaweed for lower-emissions animal feed surged on their stock-market debut.

Shares in Sea Forest finished Wednesday's session 12.5% higher at 2.15 Australian dollars, giving it a market capitalization of A$105.2 million, equivalent to US$68.1 million.

Sea Forest grows a type of red seaweed for a proprietary feed additive that it says increases livestock meat yield while reducing methane production in animals' digestive systems by up to 80%, compared with traditional feed.

So-called entric fermentation from livestock, which produces methane, is the source of about 5% of global greenhouse gas emissions, according to Australia's national science agency.

Methane is up to 30 times more potent as a greenhouse gas than carbon dioxide.

"Sea Forest's technology has the potential to empower farmers and supply chain partners, enabling them to pursue ambitious climate targets, access premium markets for sustainable products, and produce more food with fewer resources," Chief Executive Sam Elsom said in the initial public offering prospectus.

Sea Forest, which said its rivals include Kentucky-based Alltech and Europe's DSM-Firmenich, raised A$20.5 million in an IPO priced at A$2.00 a share.

It plans to expand production, including through the installation of facilities in Australia and South Africa.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

November 26, 2025 01:01 ET (06:01 GMT)

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