Equity crowdfunding is a modern form of raising capital, and the listing of Dongfang Modern Agricultural Holding Group (Dongfang) under code DFM.AX yesterday has proven the many ways it can be used to help companies raise capital and investors access deals they would have missed before.
Trading opened at 11am with a Bell Ringing ceremony at the ASX. The first trade was at A$1.06 and the stock has traded up to $1.20, some 20% up from the IPO price of A$1.00.
The raising is among the largest amounts ever raised in an ASX listing by a company with operations in China. Dongfang becomes one of the largest such companies listed on the ASX at a market capitalisation of A$390m with an IPO price base of A$1.00 per share.
Operating within the world's largest agribusiness market, Dongfang's underlying business is primarily the growing and harvesting of citrus produce, particularly tangerines, pomelos and navel oranges and also camellia fruit. In 2014, the company produced and sold over 200,000 tonnes of fruit produce, generating revenues in excess of A$133 million and delivering net profit of A$67 million. Donfang expects output to increase to around 230,000 tonnes in calendar 2015, benefitting through subsequent acquisitions of new plantations.