The opening of the Boyuan IPO offer has received widespread media attention in the Australian press. Both The Australian Financial Review and the Australian have both covered the IPO.
Financial Review Article – Boyuan is the first Chinese developer to list on ASX
The Australian Article – Boyuan plans market listing after buying giant subdivision site
Interested investors can download the prospectus on our dedicated Boyuan page
BlueMount Capital is pleased to announce that the Initial Public Offer for Boyuan Holdings Limited has opened for investors.
Key IPO Details
- First Chinese property developer to be listed on ASX and part of the very large Jiayuan Group with substantial development experience
- FY2015 sales approx. A$20 million with NPAT approx. A$6.1 million
- Pre-IPO valuation of A$50 million and P/E of 8.19x
- Valuable real estate holdings in China together with properties in NSW and plan to become a large property developer in Australia post listing
- Company intends to pay dividends in FY2016
- Experienced board and management
- Audited by Deloitte
A copy of the Boyuan prospectus is available from the dedicated Boyuan IPO page.
Open Date: 12 September 2016
Close Date: 12 October 2016
Minimum Investment A$2,000
Boyuan Holdings Limited (“the Company”), today announced that it has lodged its prospectus with ASIC for an initial public offer of shares in the Company at 20 cents per share to raise a minimum of $15 million and a maximum of $20 million. The Company has also submitted an application to the ASX for admission to the securities market operated by the ASX.
The Company will be valued at approximately $A70 million based on the offer price of 20 cents per share at the maximum subscription of $20 million under the prospectus.
The Company existing operations are located in Jiaxing, Zhejiang Province, China, where the Group is predominantly focused on developing a mixed-use commercial and residential property project known as the Jiayuan Central Plaza Project in the heart of a fast developing local town, Wangjiangjing in Jiaxing. The Company has also entered into agreements in respect of three property developments in NSW, in Austral, the Hunter Valley and Marsden Park.
- The Company, through its subsidiary Boyuan Investment Holding Pty Ltd, has entered into agreements to acquire two parcels of land in the Hunter Valley Region of New South Wales, for the purposes of commercial property development.
- The Company, through its subsidiary Boyuan Real Estate Holding Pty Ltd, has entered into an agreement to acquire a plot of land in Austral, NSW for the purposes of residential property development.
- The Company has entered into an agreement to acquire the rights to an option to acquire a plot of land in Marsden Park, NSW for the purposes of residential property development.
- The Company is also party to a sales and marketing agreement in respect of two property projects located in Lindfield and Marsden Park, NSW.
Commenting, the CEO of Boyuan Holdings Limited, Mr Yading Wan, said:
“Achieving a listing on the Australian Securities Exchange will be a key milestone for the Company as we expand into the Australian property development market. We see Australia as a key part of our international strategy. We believe that Australia’s combination of a stable government, a strong housing sector and skilled workforce provide Boyuan & our investors with significant opportunities.”
Boyuan Holdings Limited ASX: BHL
The Offer opens on 14 September 2016 and will close on 30 September 2016, with trading expected to commence on the ASX on 21 October 2016.
Details of the Offer are contained in the Prospectus lodged with ASIC. BlueMount Capital, with offices in Australia and Asia, is the Australian lead manager for the offer.
Investors interested in applying for shares will need to complete the Application Form in the Prospectus once the Offer opens. Investors should consider the Prospectus in its entirety and obtain professional advice before deciding whether to invest in the Company.
Once the offer opens, the Prospectus can be downloaded from BlueMount Capital’s Website at: www.bluemountcapital.com/BHL
Key Offer Statistics
- Offer Price per share $0.20
- Maximum number of shares available under the Offer 100 Million
- Total number of shares (and equivalent shares) on issue as at the date of this Prospectus 250 Million
- Number of shares on issue following the Offer based on maximum subscription 350 Million
- Market capitalisation at Listing based on maximum subscription $70 Million
- Offer Timetable 14 September 2016 – 30 September 2016
- Offer opens 14 September 2016 Offer closes
- 30 September 2016
- Trading expected to commence on the ASX 21 October 2016
About Boyuan Holdings Limited
Boyuan Holdings Limited (“BHL”) conducts property development and management through its Chinese subsidiary (Jiaxing Boyuan Real Estate Development Co., Ltd) in Jiaxing, Zhejiang Province, China. It has recently completed the development of a mixed-use property complex, known as the Jiayuan Central Plaza Project, located in Jiaxing City, Zhejiang Province, China. BHL is currently focusing on future property development opportunities in Australia, in Marsden Park, the Hunter Valley and Austral NSW.
For more information on Boyuan Holdings Limited, visit: www.boyuan.com.au
The Australian Securities Exchange (ASX) has recently established a Policy and Listing Standards Committee (Committee) to standardise a preliminary application review process for companies seeking listing on ASX.
According to information provided by ASX, the purpose of the Committee is to establish a mechanism to assess the eligibility and suitability of companies incorporated, mainly operating, or having a majority of their board or controlling shareholders resident, in an emerging or developing market for listing on ASX.
Previously, if a company met the conditions for admission set out in the ASX Listing Rules, the ASX would invariably admit the company on the official list of ASX, however, the proposed change to the admission framework now includes a merit based assessment.
In making such an assessment, the Committee will take into account several factors, including:
- the structure of the company and the economic commerciality of its business;
- location of the company’s business operations and where it generates revenue;
- the capability and experience of the board of directors and management team;
- the credentials of the company’s advisors, including its lawyers, accountants and corporate advisors;
- the purpose of the company in pursuing listing on ASX – in particular, the company should be able to demonstrate a genuine capital market objective, ie to raise capital, including that
- the company should be seeking to achieve a free float of at least 20%.
The Committee is conducting monthly meetings to review proposed listings including both “front door’ and ‘back door’ listings. It is recommended that Companies wishing to list on ASX, lodge a submission with the Committee as soon as possible in their listing process, setting out information dealing with the above factors. This will help avoid delays and unnecessary costs.
While ASX has yet to document the policies and procedures of the Committee, the Committee has begun operation and we will provide an update once ASX issues further information.
The ASX has confirmed that it will:
- increase the consolidated profit requirement under the profit test for the 12 months prior to admission to at least $500,000;
- increase the assets test thresholds to NTA of at least $5 million or a market capitalisation of at least $20 million.
- introduce a 20% minimum free float requirement for ASX listings at the time of admission; and
- increase the value of the parcel of securities to be held by each security holder from at least $2,000 to $5,000; and
- to change the minimum spread requirement for ASX listings to require 100-200 security holders if the entity has free float (down from 300-400).
- BlueMount is currently assisting a leading Chinese real estate developer which is in the final stage of its ASX listing with its compliance with the new requirements and its dealings with the Policy and Listings Committee.
If you have any concerns regarding ASX’s new Policy and Listing Standards Committee, or require assistance communicating with ASX regarding your plans to list, please contact us.
If you would like to have a hard copy of this information you can download a PDF copy for printing by clicking here.
China Dairy Corporation Limited (“China Dairy or “the Company”) today announced the successful closure of its ASX IPO following solid demand from a broad range of investors raising A$17 million.
At the offer price of A$0.20 per Chess Depository Interest (“CDI”), China Dairy will have a market capitalisation of approximately A$147 million.
BlueMount Capital was the lead advisor to China Dairy Corporation.
The strong response to the IPO reflects the positive long-term fundamentals for the dairy industry, driven by Chinese consumers’ growing demand for high quality food products, including dairy products. Current milk consumption in China stands at about 20kg per capita, less than a quarter of the average world consumption level(1).
China’s relaxation of its one-child policy has also led researchers1 to estimate that the country will see an average net increase of 3 million people per year and a corresponding RMB 20 billion spent in increased demand for infant formula milk.
The robust pull factors are accompanied by a renewed push by the Chinese government to further modernise agriculture through incorporating new technologies throughout the agricultural value chain to improve productivity, as articulated in the Government’s recent 13th five-year plan.
China Dairy’s Mongolia-based Research & Development facility, which is currently being developed, will underpin the Company’s strategic focus of innovation.
Final allocation and allotment of CDI’s has now been completed. Trading is expected to commence on the 8 April 2016 under the ticker code CDC.
(1) China Agri Research, 8 Jan 2016 “Analysis and forecast on China’s dairy industry” http://en.cnagri.com/report/dairy/20160108/252923.html
About China Dairy Corporation
China Dairy Corporation (“CDC”) is a leading producer and wholesale distributor of raw milk in China; as well as breeder and seller of dairy cows.
Established in 2005, China Dairy Corporation has over 160 employees located in the Company’s operations in China.
Through a number of acquisitions, CDC has grown to become a large dairy farming operation and milk producer in China, with more than 40,000 cows owned by the Company and its partners providing it with an aggregate raw milk production capacity of over 600 tonnes per day.
CDC operates a diversified business model through which the Group expanded beyond breeding company-raised cows, to also outsourcing cattle-raising to farmer-raised and farmer-owned cows – which provides additional revenue streams through the wholesale of raw milk.
The Group has shown consistent historic growth over recent years with FY2015 revenues reaching A$79.1 million and total comprehensive income reaching A$39.5, representing a compounded annual growth rate (CAGR) of 19% and 20% respectively since FY2013. CDC’s FY2015 net profit margins of approximately 50% give it the highest profitability margins when compared to other ASX-listed dairy companies.
For more information on China Dairy Corporation, visit: www.chinadairyco.com
 According to a collaborative report by the OECD and the Food and Agricultural Organisation of the UN.
BlueMount Capital is pleased to announce the Initial Public Offer for China Dairy Corporation is now available.
Key Facts & Figures
- Large producer and distributor of raw milk in China
- CDC and its partners have approx. 40,000 cows
- Very profitable approx.A$40 million NPAT FY2015
- FY2015 sales approx. A$80 million and cash at bank approx. A$70 million
- 10 year operating history
- Company intends to pay a interim and annual dividends in 2016
- Experienced board and management
- Key market: China
The Prospectus for the offer is available from BlueMount Capital and can be obtained via:
Open Date: 9 November 2015
Close Date: 5 January 2016
Minimum Investment A$ 2,000
A Prospectus for the offer of Chess Depository Interests (CDI’s) in China Dairy Corporation Limited (ARBN 607 996 449) (Company) a Hong Kong registered entity was lodged with ASIC on 30 October 2015. The Prospectus may be obtained by visiting www.bluemountcapital.com/CDC. Offers of the CDI’s are only made in the Prospectus.
Investors wishing to apply for CDI’s should read the Prospectus carefully prior to deciding whether to acquire the CDI’s. Anyone wishing to acquire the CDI’s offered in the Prospectus will need to complete an application form that will be in, or accompany the Prospectus. Neither the Company, the Lead Manager or the Corporate Advisor make any representations or warranty, express or implied, or provide any guarantee regarding the likely investment returns, the performance of the CDI’s or the Company, or the suitability of the CDI’s for any investor.
Please note that any advice given by BlueMount Capital (Sydney) Pty Ltd is GENERAL advice, as the information or advice given does not take into account your particular objectives, financial situation or needs. Therefore at all times you should consider the appropriateness of the advice before you act further.