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Agrotech listing aims for $117.5m

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Listing hopeful China Agrotech Holdings intends to set its issue price at between 8.5 and 10.5 times its prospective earnings to reap up to $117.5 million from the Growth Enterprise Market.

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The Fujian-based company told fund managers and analysts yesterday that it would fix the price of its shares at between $1 and $1.25 each.

It is the mainland's only producer of regulatory-type plant growth regulators - bio-chemicals used to enhance crop yield and quality, with the effect similar to that of vitamins on humans.

Agrotech aims to issue between 75 million and 94 million shares.

It has forecast a net profit of $28.2 million for the year to June, representing a 400 per cent jump from $5.52 million last year, according to its preliminary prospectus.

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Company founder Wu Shaoning said the mainland could only meet about one-tenth of the potential demand of about 160,000 tonnes of plant-growth regulators a year.

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