SPAC IPO FILING: China Growth Alliance Ltd. (CGN)

China Growth Alliance Ltd. is another a blank-check company or special purpose acquisition company (or SPAC) that has filed to come public via an initial public offering.  It filed to sell up to $56 million in units and will trade under the "CGN" ticker on AMEX.  China Growth plans to sell 7 million units in the IPO at $8.00 each. 

Its underwriting group consist of Ferris Baker Watts Inc., Jesup & Lamont Securities Corp. and Maxim Group LLC.  Each unit consists of one ordinary share and one Class B warrant, while each Class A warrant will entitle the holder to buy one ordinary share for $6.00.

As normal with blank-check and SPAC companies, China Growth will acquire an unspecified business.  While no business, nor even exact sector is assured, the company intends to focus initial efforts in locating a business with operations in the People’s Republic of China.  It’s a good thing they cleared that up, because that would have been almost impossible to tell by the name.  Management is as follows:

• Dr. Bin Zhou, Chairman and Co-Chief Executive Officer;
• Mr. Peifeng Zhu Vice Chairman and Co-Chief Executive Officer;
• Mr. Dongbing Ma, Vice Chairman and President.

Jon C. Ogg
March 18, 2008