Sovgem Share Discussion Threads

[jessica5] 06/2/2006 08:03

TICKER IS BODI:

RNS Number:9399X
Bodisen Biotech Inc
06 February 2006

PRESS RELEASE
Not for release, distribution or publication in whole or in part in or into the
United States, Australia and Japan

Bodisen Biotech, Inc ("Bodisen" or "the Company")

Placing and Admission to AIM

Summary: Bodisen Biotech Inc, a leading Chinese manufacturer of
environmentally-friendly organic bio-fertilisers announces its admission to AIM
with effect from today. Bodisen is valued at #130 million at the placing price
and will be the largest Chinese Company on AIM. The AIM admission was managed by
Charles Stanley Securities, Bodisen's nominated adviser and broker, working with
the Company's US Wall Street advisers, New York Global Group.

Its arrival on AIM follows the completion of a placing which saw institutions
invest #12 million for 1,643,836 new shares at 730p per share. The offer was
more than three times oversubscribed.

The Company is incorporated in the State of Delaware in the U.S. with its
principal place of business based in the Shaanxi Province of The People's
Republic of China. There is also a liaison office in Beijing. The Company is
engaged in the research, manufacturing and marketing of proprietary
technology-based environmentally friendly fertilizers and pesticides. Bodisen
sells over 60 packaged products in 3 categories directly to over 150 wholesalers
throughout The People's Republic of China.

The Company was founded in 2001 and has seen sales grow from $4.9m in 2002 to
$23.6m for the 9 months to September 2005. Net income for the 9 months to
September 2005 was $6.35m.

China is the world's largest consumer of fertilizers, with 45 million metric
tons of consumption, but its organic compound fertilizer industry is highly
fragmented. Bodisen has a solidly established brand-name and an extensive sales
network in 20 of China's 30 provinces. No other Company has products in all
segments (compound, liquid, pesticides). Bodisen will use the money raised by
its arrival on AIM to invest in further manufacturing projects, upgrade existing
ones, and provide additional working capital to fund future growth.

Bodisen initially planned to raise up to #10 million principally to fund two new
further factories.

The Company is already listed on the American Stock Exchange (AMEX) in New York
under the symbol BBC.

Bodisen was last month identified by Forbes Magazine as the 16th fastest growing
Company in China, and Ms Wang was 2004 China Business Woman of the Year. The
Company recently announced that it had received US$43 million of product orders
for 2006 delivery as a result of its participation in two major domestic trade
shows and that it saw a positive outlook for 2006 and beyond, in a favorable
market environment.

Bodisen's founder Chairman & CEO Karen Qiong Wang said: "We are naturally
delighted that demand for our shares has been so strong, and that we come to AIM
with such a solid institutional shareholder base. This is an important step for
Bodisen as we continue to expand our markets and maintain our strong earnings
growth."

For further information contact:

Rick Thompson, Charles Stanley Securities: [phone]
Dugald Carlean, Charles Stanley Securities: [phone]

Allan Piper, First City Financial Public Relations: [phone]
[phone]

Jiang Lei, First City Financial Public Relations: [phone]

Bodisen - background

[jonwig] 05/2/2006 18:57

Bodisen has recently traded above $20, the UK placing is at $13 equivalent and the US price seems to have dropped to $15 on this news.

I just don't know what to make of this discount to the prevailing price.
But remember SOV sold most of their Bodisen at a much lower price, presumably thinking them fully valued then.

As to pricing in the aftermarket, the US price is a bit higher as of Friday's close, so I imagine the gap will be filled on Monday morning - pure speculation on my part, though.

[jessica5] 05/2/2006 18:24

Buy here and spread your bet IMHO...let's see how much they mark this one up first thing....;-))

[coroon] 05/2/2006 17:11

Hi jonwig,milner2,and jhan66
I'm in a bit of a quandary,do you think Sov have used some of their cash on BBC in the recent placing?
Last year when INDY came to AIM, I bought in the first couple of hours and paid twice what the share price is at the moment,but topped up at a more realistic price a few weeks later.
Tomorrow,should I get in early or wait until the share price settles down?
I don't want to be left behind.

[milner2] 05/2/2006 13:38

Good review of Bodison's AIM listing in the Daily Mail 2day.
Seem to be getting a lot of good press of late.......


ORGANIC fertiliser producer Bodisen Biotech will become the largest Chinese company listed on the junior Alternative Investment Market when it makes its debut tomorrow after a larger-than-expected fundraising.



Bodisen, whose founder and chairman is Karen Qiong Wang, will be valued at more than £130m when it joins Aim.


Institutions invested £12m in the business, up from initial estimates of £10m.


The company, whose Aim admission was managed by Charles Stanley Securities, makes environmentally friendly fertilisers and pesticides and sells products to more than 150 wholesalers throughout China, the world's largest consumer of fertilisers.


Wang said: 'We are naturally delighted that demand for our shares has been so strong, and that we come to Aim with such a solid institutional base. This is an important step for Bodisen.'


The cash raised will be used to build two new manufacturing facilities in Xinjiang in north-west China and Heilongjiang in the north-east.

In addition, the cash will be used to upgrade existing factories and provide funding for growth.


Bodisen, which was founded in 2001, has seen its sales grow from £2.8m in 2002 to £13.3m for the nine months to September 2005, when net income was £3.6m.

Last month, the business was listed by Forbes magazine as the 16th-fastest growing company in China.

Bodisen, which recently announced £24 million of orders for this year, is already listed on the New York Stock Exchange.

[jonwig] 05/2/2006 11:30

From the Sunday Telegraph:

Peter Hambro, the scion of the famous banking family who has become a leading light of the junior Aim market after building his Russian gold company into a £1bn venture, is preparing to float a forestry products business.

Tynda Forest Holdings currently owns 1.9m ha of forestry land in eastern Russia. It is chaired by Peter Hambro and majority owned with his Russian business partner, but run by his son Leo.

"That's about the size of Wales," Leo said. "It produces 1.5m cubic metres of wood per year. That is the sustainable level of harvest that we are permitted to cut."

The company is worth around $100m but is looking for deals to bulk up before floating on Aim in June or July this year.

"We are in merger talks with two or three similar-sized or larger companies with forests more to the west in Russia and we want to do the deals before the IPO," Leo said.

The company is building a parquet flooring factory just over the border in China and also makes fibre board and plywood. However, most of its produce is sold as rough-sawn logs to Japan and China.

The Hambros intend to invest in factories to produce more finished products for the Russian and Far Eastern markets and are experimenting with technology to produce fibre board without the use of environmentally damaging chemicals.

"We are looking to create as much value as we can before the float," Leo said. "We will be the only way to invest in the Russian timber market and it is highly fragmented."

[jonwig] 05/2/2006 11:27

Bodisen starts trading on Monday 6 Feb.
This is Growth Company Investor's view:

Chinese fertiliser maker Bodisen Biotech starts trading on AIM on Monday after a £12 million placing.

Broker Charles Stanley arranged the placing for Bodisen, which is already listed on the American Stock Exchange, where the shares have recently traded at $18 – substantially above the $13 (£8) price at which the oversubscribed AIM placing was carried out.* At the American price, the company boasts a market value of $279 million.

'This is the first company to obtain a dual listing on AMEX and AIM,' says Richard Thompson of Charles Stanley, who has been working on the complicated transaction for almost a year. 'We needed to obtain SEC registration in the US,' he explained.

Bodisen, which makes organic fertiliser in both liquid and compound forms, is also the biggest Chinese business yet to float on AIM, joining such ventures as orange grower Asian Citrus.

Bodisen has seen revenues more than treble since 2002 and Charles Stanley predicts net profits of $5 million for 2005 on turnover up 76 per cent to $28.6 million. The money raised will fund the construction of two new factories in China to expand the company's distribution range.

Founders and executive directors Qiong Wang and Bo Chen will see their 47.4 per cent stake diluted by almost ten per cent. A range of UK institutions supported the AIM flotation, alongside pre-IPO investor SovGem, which itself is listed on AIM.

Yesterday SovGem issued a trading update, revealing a net asset value of 24.5p a share, against a recent share price of 15p. SovGem has also backed five other Chinese or Russian ventures, including OFEX-traded Concorde Oil & Gas, which has nearly quadrupled in value. Concorde plans to join AIM shortly.

Another intriguing concern is Russian timber producer Tynda Forest, which also hopes to join AIM this year. The company operates just over the border from China in the far east of Russia and supplies markets nearby. Tynda boasts mining specialist Peter Hambro as chairman. His son Leo is managing director.

Expect some lively trading on Monday.

*May explain share price drop on Friday?

[jonwig] 03/2/2006 08:27

Nappers - look at the table in the header, and adjust the Value column using the latest data.

[nappers] 02/2/2006 21:19

So how do they come to 24.5p then - I thought we were nearer to 30p ??

[jonwig] 02/2/2006 13:34

Nappers - no, NAV is cash-inclusive.

[nappers] 02/2/2006 12:54

So does the RNS ignore cash as per the heading above - in which case the true value of SOV is nearer 28p ?

[coroon] 02/2/2006 11:20

Was that a ploy by the mm's to shake out a few weak holders and profit takers?
It seems to have worked,some large sells gone thro.
Maybe a big buyer waiting to mop them up.

[milner2] 02/2/2006 10:45

The listing of Tynda forest hopefully won't be to far off,
thinking of following SOV into this one, Peter Hambro ventures seem to do well.

[coroon] 02/2/2006 10:38

After what happened to Starvest yesterday I contemplated about topping up this morning,but the buy price quoted on Squiregain was 16.95p, so I'll hold out for the moment to see if it drops back a little.Should have logged in earlier.
,

[jonwig] 02/2/2006 10:37

Mr Market seems to be discovering what we've known for some time!

The imminent (I think) float of Tynda Forest should put a valuation on SOV's holding well above the £500,000 they paid for it - it's still on the books at cost, of course.

Alternatively, of course, this could be a re-run of the reverse takeover story which, though true, came to nothing.
In that case, a premium to NAV is called for.

[njp] 02/2/2006 10:21

Looks like we're getting there pdq then. Glad I topped up today.

[milner2] 02/2/2006 10:15

17p sounds about right.

[jhan66] 02/2/2006 09:57

Hi NJP,
at 17p, I reckon 30% is still generous. Covers for illiquid share, foreign markets, small cap, Jersey offshore status etc.
discount could reduce again with positive presentation, IPO's ...

[njp] 02/2/2006 09:15

What do you reckon the fair discount should be here, jhan?

[jhan66] 02/2/2006 09:10

good timing on the presentation.
Not only because of the large discount & rapid growth, I feel NAV discount is in the spotlight this month. Starvest showed this the other day, but elsewhere I've seen discounts dropping substantially. It's created big returns for me at BEE, BPFU, BPW & a few other places. Can't just be my luck in a small backwater of the Market

[jonwig] 02/2/2006 07:12

I'm sure there would be no problem for a PI to attend - not for me, as I'm in the outback.

SovGEM (AIM: SOV), the emerging market finance house, today announces that it is
holding investor presentations during which the Company will disclose that the
Directors best estimate of net asset value at close of business on 31 January
2006 was 24.5p per share. The company floated on 23 November 2004 with a net
asset value of 12.77p per share.

[orvis] 01/2/2006 14:29

nav of about 25.5p today then = about half price to buy shares

[jonwig] 01/2/2006 14:23

orvis - it's all in the header - read and enjoy (not updated for a week, sorry, but not changed materially, I think).

[orvis] 01/2/2006 14:09

Nappers, its on my watchlist. Just checked the 5 quoted shareholdings they have that I could find and at bid they are worth about 19.6p/share today I calculate. The unquoted company/companies and any cash will add quite a bit I guess. Do you have any estimates for them?

[nappers] 01/2/2006 13:59

What with the Bodison listing, the Tynda listing the China Natural Gas rally and Concorde rally on the move to AIM my guess is we may already be at more than 50% discount to NAV around the 30p mark and we may even get a pop to 20p as per SVE if they release a similar kind of RNS. SVE released an RNS on 62% discount to NAV about 2 hours ago and at some point the share price was up 100% - my guess is we may get a switch from SVE holders to this one if the discount is greater here than SVE. Interesting to see if the volume picks up...

Definitely time to get in if this is on the watchlist...