An IPO For Chinese Hogs (SCLI)

American investors looking for Asian growth opportunities are soon to get a chance to hear “Squeal like a pig!” from China.  A company called Southern China Livestock, Inc. is now closer to coming public in America.  Southern China Livestock is a hog seller in China.  It is not a cattle ranching outfit.

The company filed an amended offering registration statement showing its year-end data, although IPO terms are still elusive for a share count and for a pricing.  Shares will be sold and traded on the NASDAQ Capital Market under the symbol “SCLI.”  It also lists Rodman & Renshaw and Newbridge Securities as its underwriters.

The company breeds, raises and sells live hogs in the People’s Republic of China.  It operates 24 breeding farms with a current annual production capacity of about 220,000 live hogs.  It sells hogs to trading agencies mainly in the Chinese cities of Shenzhen and Shanghai and in Jiangxi Province. The largest customer is Shenzhen Dexing Food Development, a government affiliated trading company, which accounted for about 54% of its sales in the fourth quarter of 2010.  That customer also accounted for about 70% of sales for the year ended September 30, 2010 and accounted for roughly 75% of sales for the year ended September 30, 2009.

Revenues in the calendar fourth quarter of 2010 were $10.662 million, but that is down from $11.378 million in the same period of 2009.  Its total sales in 2010 were $40.318 million in all of 2010 versus $32.14 million for all of 2009.

Before the effect of the offering, the company has 7,144,071 shares outstanding.  More data can be found in its latest amended filing.

JON C. OGG