May 29, 2010

Expedite 4 files plans for US$40 million IPO

Chinese hog farming company Expedite 4 Inc. filed plans to raise up to an estimated US$40 million through an initial public offering of stock and warrants in the US.

With the proceeds, Expedite 4 intends to acquire several pig farms a year, taking advantage of what it called a fragmented marketplace.

The US IPO market has been choppy as the broader markets have been volatile in recent weeks. One company boosted the size of its offering this week while one withdrew and another postponed.

Expedite 4 does business as Jiangxi Yingtan Huaxin Livestock Co., which was established in 2005 and has 19 breeding farms with a combined 90,000 hogs. In the six months ended March 31, the company had earnings of US$3.2 million on revenue of US$19.4 million, compared with a prior-year profit of US$4.1 million on revenue of US$17.3 million.

The company intends to apply to list its stock on the Nasdaq Capital Market.