February 10, 2010
AgFeed to sell animal feed unit in share offering
Chinese animal feed and pork producer AgFeed Industries has announced the proposed sale of a maximum of 20% of its animal nutrients feed subsidiary through a listing and initial public offering (IPO).
The IPO is anticipated to raise US$20-25 million and will be effected through the filing of a registration statement with the SEC that the SEC must declare effective before any common stock sales may occur.
Songyan Li, AgFeed chairman said, "The offering will enhance the ability of our animal nutrition business to pursue strategic initiatives and growth, upgrade personnel, foster innovation and raise capital while relying on the wisdom and practical experience of the parent company."
Last year, the company announced a joint venture with US hog producer as China attempts to introduce the Western model of pork production to China and Asia.