Duoyuan Global Water raises $88 million through IPO

Duoyuan Global Water, Inc., a China-based manufacturer and distributor of water and wastewater treatment equipment, has completed its initial public offering (IPO) of 5.5 million American Depositary Shares (ADSs), representing 11 million ordinary shares, at a price of $16 per ADS raising gross proceeds of $88 million.

Update on June 24, 2009:

Duoyuan Global Water has priced its IPO of 5.5 million ADSs, representing 11 million ordinary shares, at a price of $16 per ADS.

The company has granted the underwriters a 30-day option to purchase up to an additional 0.83 million ADSs to cover over-allotments, if any.

Announcement (June 1, 2009):

Duoyuan Global Water has filed a registration statement with the Securities and Exchange Commission to raise $86.25 million in its IPO.

As part of the transaction, Duoyuan Global Water will issue 5 million ADS representing 10 million ordinary shares at a price between $13 and $15 per share.

The company plans to list its shares on the New York Stock Exchange under the symbol 'DGW.' The shares are expected to be priced and begin trading in the week of June 22, 2009.

Piper Jaffray & Co. is acting as sole book-running manager, Oppenheimer & Co. and Janney Montgomery Scott LLC are acting as underwriters. Hogan & Hartson LLP is acting as advisor to Duoyuan Global Water on the transaction.

Deal Value (US$ Million) 88
Deal Type                IPO
Sub-Category             Completed
Deal Status              Completed: 2009-06-30

Deal Participants

Target (Company) Duoyuan Global Water, Inc.

Deal Rationale

The company intends to use the net proceeds from the offering to improve and upgrade existing manufacturing facilities and production lines; to build new manufacturing facilities and production lines; to produce new water treatment products; to build a research and development laboratory; to fund potential acquisitions of complementary businesses; and for general corporate purposes.

Offer Price ($ per share) 16
No. Shares Issued         5500000

Related terms: acquisition, advisor, book, china, corporate, distributor, ipo, manufacturer, manufacturing, products, public offering, research and development, water