Fund-raiser is the first by an agricultural play since disastrous Euro-Asia listing Asian Citrus, the largest orange grower in China, is planning a flotation in Hong Kong this year - the first by a pure agriculture play since that of Euro-Asia Agricultural (Holdings) in 2001. The company is looking to raise about $350 million and has SBI-E2-Capital as one of the deal arrangers, according to a market source. The deal was originally scheduled for last year but was delayed for more preparatory and restructuring work. SBI-E2-Capital declined to comment. 'It's usually more difficult to list a pure agricultural play given its bumpy revenue pattern and therefore more work and study is necessary,' another source said. Also, more time is needed to prepare the financial statements due to 'difficulty in assessing the valuation for the organic inventory, a major asset for a plantation'. 'The revenue of a plantation is quite reliant on weather. In good weather, you will get good harvests and good revenue, but in bad weather you get nothing but losses on the financial statements,' the source said. 'As a result, it's recommendable for the plantation to include other auxiliary revenue to stabilise the income stream.' For example, organic vegetable and fruit grower Chaoda Modern Agriculture (Holdings) diversified its revenue into processing and retailing businesses. However, Asian Citrus specialises in growing oranges and has not yet entered the food-processing sector. The previous - ultimately disastrous - pure agricultural play listing was that of Shenyang-based orchid grower Euro-Asia Agricultural in July 2001. The firm is now in provisional receivership after it was found to have inflated its revenue 20 times to obtain a listing. The company also allegedly exaggerated the size of its greenhouse production facilities and used farmland illegally. Shares in Euro-Asia have been delisted since May last year.