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SCMP Reporter

Shenyang-based horticultural firm Euro-Asia Agricultural (Holdings) plans to raise more than US$60 million in what will be the largest SAR initial public offering by a non-state-owned mainland firm this year.

Euro-Asia Agricultural will issue about 400 million new shares to institutional and retail investors, according to a local market source.

This will represent 25 per cent of its enlarged share capital.

The firm has appointed ICEA and ING Barings as co-lead managers, and ICEA as the listing sponsor.

Its float on the Hong Kong main board, set for July 19, will make it the first main board-listed flower cultivator.

Ninety per cent of the issue will be placed to institutional investors, with book opening starting this week.

The retail portion was set to start on July 9, the source said.

The company will take its roadshow to Britain, France, Holland, Ireland, and Switzerland.

A major part of the proceeds will be used on the construction of 40 hectares of greenhouse facilities and increasing research and development.

The greenhouse facilities, expected to cost 500 million yuan (about HK$468.5 million) and to be completed by June next year, would more than double the firm's output, said vice-president Yan Chuang.

Established in 1997, Euro-Asia Agricultural is controlled by founder Yang Bin.

It has specialised primarily in the soil-less cultivation of Cymbidium and Phalaenopsis, two species of orchid, in 17 hectares of greenhouse facilities in seven production bases in Liaoning, Jilin, Hebei and Shandong provinces.

The firm had seen annual growth of 40 per cent to 50 per cent in its land, 200 per cent to 300 per cent in turnover and more than doubling of its profits every year, Mr Yan said.



Flower firm sets year-high for non-state issue