This Case is about Finance, International
Publication Date: 08/16/1999
Nanpo was created in 1981 with a mandate to be the exclusive provider of fresh water fish, poultry, livestock, and fruit and vegetables produced in Guangdong, the bordering state of mainland China. Throughout time, Nanpo has built up a distribution channel of 500 wholesalers and an estimable market share in many food types. Lately, its exclusive provider status was reaffirmed by the Ministry of Foreign Trade and Economic Cooperation in the PRC. The leadership at Nanpo adopted an adventerous strategy for improving business including new food processing facilities and forward integration into restaurant chains and retail outlets. The management of Nanpo has employed a local merchant bank, Hinson Capital, as its lead underwriter and has determined to float 25% of the business. Three weeks away from the planned IPO, a manager of Nanpo, Jack Yang, is reviewing the details of pricing.
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