CHINA: Zhongpin closes stock offering

By just-food.com | 20 October 2009

Chinese food maker Zhongpin has closed its previously announced public stock offering.

As of 15 October, the company's offering of 4,000,000 shares of common stock, and the sale of an additional 600,000 shares of common stock at the public offering price of US$13.25 per share pursuant to the over-allotment option, closed.

The exercise of the over-allotment option brings the total number of shares sold by Zhongpin in this public offering to 4,600,000 shares and the total gross proceeds to $60.95m. The aggregate net proceeds received by the company totalled around $56m, after deducting underwriting discounts, commissions and offering expenses payable by the company.

Zhongpin intends to use the net proceeds from the offering to fund expansion plans, to repay short-term indebtedness and for working capital and general corporate purposes.

Piper Jaffray & Co. acted as the sole book-running manager for the offering and Susquehanna Financial Group acted as co-manager.

Sectors: Meat & poultry, Seafood

Companies: Zhongpin