China Greenfresh 6183

[winston]

Mushroom firm trumpets IPO by Kanis Leung

China Greenfresh Group, the mainland's largest trumpet mushroom products maker, opens its retail book today as it seeks up to HK$777 million in an initial public offering.
Each share is priced at between HK$4.58 and HK5.18 apiece, representing a minimum fee of HK$5,243.19 for a board lot of 1,000 shares. The retail bookbuilding ends on June 11 and trading is slated for June 18.

Established in 1995, the firm now ranks as the largest trumpet mushroom producer and the seventh largest button mushroom supplier in the mainland, with a market share of 2.5 percent and 0.6 percent in 2013, respectively.

The Fujian-based firm intends to use the 68.8 percent of net proceeds to develop two biological technology food industry parks, in Guangxi and Zhangzhou.

The rest of the capital will be used in acquiring two king trumpet mushroom cultivation facilities, laboratory and testing equipment and constructing a mushroom garden.

The firm has already invested HK$8 million in the project, and estimates it will invest a total of HK$40 million in it, chairman Zheng Songhui said.

Accompanying the chairman was vice president David Chen and chief financial officer Rita Zheng.

Zheng said the firm will develop new products such as small-size king trumpet mushrooms to diversify its products, given that prices for king trumpet mushrooms are dropping.

Zheng announced that COFCO Fund had subscribed for 60 million yuan (HK$74.98 million) worth of shares.

Zheng said the firm originally planned to expand to Taiwan. However, it has found the market in Hong Kong more suitable and mature for the firm's business.

Source: The Standard HK

[winston]

not vested

China Greenfresh Group (6183) debuts today, after shares were mixed in gray market trading yesterday.

The mainland edible fungi products maker closed 1.27 percent higher on Bright Smart Securities platform But they fell 0.21 percent to HK$4.70 at Philip Securities platform, entailing a HK$10 loss for one board lot of shares.

The Fujian-based firm raised net proceeds of HK$546.2 million by pricing shares at HK$4.71 apiece, close to the lower end of its indicative range between HK$4.58 to HK$5.18.

Its retail tranche was oversubscribed 12.46 times.

Source: The Standard