China Farm Equipment launches IPO at $0.345 of 62 million new shares.

China Farm Equipment Ltd, a China-based manufacturer of farm equipment, launched an initial public offer (IPO) here of 62 million new shares at $0.345 per share, aiming to raise S$17.8 million in net proceeds. The IPO comprises a retail tranche of 3 million shares and a placement tranche of 59 million shares. China Farm said it will use the net proceeds to acquire more plants, machinery and production facilities, enhance research and development capabilities, expand sales and marketing network and the rest for working capital requirements. SAC Capital Pte Ltd is the IPO manager, while UOB KayHian Pte Ltd acts as underwriter and placement agent. The public offer will close on February 7 and trading will commence on February 9.

"The directors believe that China offers substantial growth potential for
its farm equipment industry, China Farm said. "The Chinese government's support and encouragement for mechanization in the Chinese agricultural industry will lead to increased automation and growth and developmento of the Chinese agricultural industry," it added. The company said it intends to distribute dividends of not less than 30% of its net profit to shareholders for its 2006 financial year.
Its net profit surged 156.8% year-on-year to 33.9 million yuan in 2005 on the back of a 51.5% jump in revenue to 236.5 million yuan. For the 10 months to October 2006, the group posted net profit of 44.8 million yuan and revenue of 254.6 million yuan.

I think this is one the good investment in China stock especially in China farm equipment. The best is to look for Ex-state own company (mean last time the company was own by the Govt. but now is become private company.) in this way you will be safe and the growth will be potential. It is better to get as many information as possible that will reduce the risk in your investment.