Chinese company Hunan Dakang Pasture Farming altered plans for its initial public offering (IPO) proceeds just two months after the IPO, reports National Business Daily, citing a company filing.
The company initially planned to construct a 300,000-pig farm in Huitong County, Hunan Province.
The chairman of the company, Chen Liming, also promised prior to the IPO that the company would not alter its plans for the IPO funds.
Hunan Dakang Pasture Farming will establish a wholly-owned subsidiary Xinkang Fasture with registered capital of 21.77 million yuan and inject 28.23 million yuan into a new joint venture (JV).
Dakang's wholly-owned subsidiary, Yongchang Pasture and the new JV will oversee the use of the IPO funds instead of Dakang.
The location of the pig farm will now be Xupu County, Hunan Province, but the total capacity and investment in the IPO-funded pig farm has not changed from the initial plans.