SHOUGUANG, China, June 11 /PRNewswire-Asia-FirstCall/ -- China New Borun Corporation (NYSE: BORN; "Borun" or the "Company"), a leading producer and distributor of corn-based edible alcohol in China, today announced that its initial public offering of 5.725 million American Depositary Shares ("ADSs"), representing 5.725 million ordinary shares, was priced at $7.00 per ADS. The gross proceeds from the sale of the ADSs totaled approximately $40.075 million. The ADSs are expected to begin trading on the New York Stock Exchange on June 11, 2010 under the symbol "BORN."
Borun intends to use the net proceeds to complete construction of Phase III of its Daqing facility and generally support expansion of its production capacity.
Piper Jaffray is the sole book running manager of the offering, while Cowen & Co., Oppenheimer & Co. and Newbridge Securities Corporation are acting as co-managers. The Company has granted the underwriters a 30-day option to purchase up to 858,750 additional ADSs to cover over-allotments, if any.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
A copy of the prospectus related to the offering may be obtained by visiting EDGAR on the SEC's Web site at http://www.sec.gov and from Piper Jaffray & Co., Prospectus Department, 800 Nicollet Mall, Suite 800, Minneapolis, MN, 55402, telephone: 612-303-8290 or email: prospectus@pjc.com.
About China New Borun Corporation
China New Borun Corporation ("Borun") is a leading producer and distributor of corn-based edible alcohol in China. Borun's products are primarily sold as an ingredient to producers of 'Baijiu', a popular,
grain-based alcoholic beverage that is sold throughout China in retail stores, bars, and restaurants. The Company also produces DDGS Feed and corn germ as by-products of edible alcohol production and is also involved in the process of constructing facilities to produce liquid carbon dioxide from waste carbon dioxide produced during the alcohol production process. China New Borun is based in Shouguang, Shandong Province. Additional information about the company can be found at http://www.chinanewborun.com .
Forward-looking Statements
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
For more information, please contact:
ICR, LLC
In the U.S.:
William Zima
Tel: +1-203-682-8200
In China:
Michael Tieu
Tel: +86-10-6599-7960