May 27, 2008 (photo below)
RICHMOND, VA --
Anderson & Strudwick acted as the lead placement agent for an initial public offering of 1.2 million shares priced at $7.75 a share for Sino-Global America (nasdaq: SINO), China’s leading non state-owned shipping company.
In 2006 Anderson & Strudwick managed the IPO for eFuture, a firm headquartered in Beijing.
Sino-Global expects to receive $9.5 million for maximum net proceeds of $8.2 million--the majority of which it intends to use to expand its business in 15 to 35 Chinese ports.
The shipping company is investing heavily in expansion of its operations to capitalize on the country’s voracious demand for iron ore. It competes with the partially government-owned companies Penavico and Sinoagent which account for 85.0% of the market share for Chinese shipping agencies.
According to Sino-Global’s registration filing with the Securities and Exchange Commission, total sales for Chinese shipping agencies were $1.5 billion in 2006. In 2007, the company’s sales rose 13.1%, to $10.1 million, from $8.9 million in 2006.
Based on the initial demand for the newly-traded stock, investors see potential for Sino-Global which has offices in New York as well as Beijing.
“China is currently the world’s largest importer of iron ore, and global shipping capacity has been unable to keep pace with China's demand for iron ore, resulting in increases in the cost of iron ore to China of 71.5% in 2005, 19% in 2006 and 9.5% in 2007,” the company’s filing explains. Iron shipments from Australia, Brazil and India, comprise the bulk of its cargo.
Sino-Global was incorporated in New York in 2001 to better develop its North American client base. The company acts as a local agent for its customers with its range of services, which includes customs assistance and help with ground transportation.
Anderson & Strudwick acted as the lead placement agent for the offering referenced above which closed on May 20, 2008. This announcement appears as a matter of record only.
Anderson & Strudwick, Inc. is full-service regional investment firm with more than 140 investment professionals and support personnel. The firm provides investment banking, asset management, securities brokerage, insurance products, and related financial services. It is a Virginia-based, employee-owned company with branch offices in Richmond, Charlottesville, Fredericksburg and Norfolk VA; Charlotte, NC; Canonsburg and Bethlehem PA; Columbia, SC; and Knoxville, TN. It is a member of FINRA and SIPC.
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