PKF Assists Dongfang with ASX Listing
Posted 18 Feb 16
One of the highlights for the PKF Corporate Finance team in 2015 was working with PKF Hong Kong on the ASX Listing of Dongfang Modern Agriculture Holding Group Limited (ASX:DFM) (“Dongfang”).
Chinese citrus producer, Dongfang, raised A$39.2m from institutional and retail investors to fund the expansion of its business.
On 20 October 2015 Dongfang was listed on the ASX with a market capitalisation of A$390.2m, becoming one of the Exchange’s Top 200 companies by market capitalisation. It was also the largest non-government Chinese owned company to list on the ASX in the last 20 years. Dongfang now has a market capitalisation of $545m and is one of the best performing stocks over the past six months.
PKF Corporate Finance was engaged as the Investigating Accountant and provided a report on forecast and historical financial information disclosed in Dongfang’s prospectus. Andrew Jones and myself assisted Dongfang’s management, directors and major shareholder through the ASX listing process, regulatory requirements and market expectations.
Working with the PKF team in Hong Kong and China helped to ensure that the preparation and review of financial information was conducted efficiently and to the standard expected by the ASX and ASIC.
As part of the engagement, Andrew and I visited a number of Dongfang’s plantations, offices and customers in Jinagxi Province in China. Visiting Dongfang’s’ sites provided us with the opportunity to gain a detailed first-hand understanding of the Company’s operations and get to know the locally-based management team who were all very welcoming. We were accompanied by some of our colleagues from PKF’s Hong Kong office which made for a very productive trip.
We really enjoyed working with the Dongfang team. They demonstrated that they were committed to understanding and ensuring compliance with all Australian regulatory matters as well as meeting general market expectations for disclosure of information.
PKF’s offices in Hong Kong also welcomed us when we arrived with boxes of fresh oranges and mandarins directly from Dongfang’s plantations. Needless to say, we have now built a strong relationship with our colleagues in Hong Kong.
For other Chinese-based companies, recent events in the region (i.e. the Chinese stock market crash, the temporary halt of listings on Chinese stock exchanges and long waiting lists for listing on the Shanghai Stock Exchange), have made the ASX an attractive alternative for an IPO.
Having previously worked closely with other foreign-based companies, including Dongfang, we have a deep understanding of the challenges which are faced by foreign companies seeking to list on the ASX. With close working relationships with other PKF offices in the Asia-Pacific region, PKF Corporate Finance is able to provide a “world-wide” service to international companies seeking an ASX listing.
Seven months on, and DongFang has a market value of approximately $900 million and is Australia’s fastest-growing food company. Click here for full details.
For advice about how PKF help your company with an ASX listing or other corporate finance matters, don’t hesitate to contact our Corporate Finance team in Sydney on +61 2 8346 6000, Newcastle + 61 2 4962 2688