Adama Raises Funds for Growth
ChemChina subsidiary Adama has raised nearly 1.6 billion Chinese yuan ($243.8 million) to fund certain designated investments.
These include ramping up capacity at its recently commissioned formulation plant in Huai’An, China, and installing and expanding manufacturing facilities in Israel, Brazil and the US. Adama said it will also use the money to further develop its global product portfolio.
The funds were raised from six Chinese institutional investors. Adama sold 104.7 million new shares at 14.90 yuan each, taking the company’s aggregate market capitalization to $6.14 billion. The new shares were listed on the Shenzhen Stock Exchange as of Jan. 17.
“This capital raise demonstrates our ability to benefit from the significant equity capital market in China, one of the key aims of our combination and flotation. Following our recent inclusion in the Shenzhen-Hong Kong Stock Connect, Adama now represents a unique opportunity for both Chinese and global investors. The proceeds we raised will be put to good use in supporting our key global growth initiatives in the coming years,” said chief financial officer, Aviram Lahav.
Adama Agricultural Solutions merged with Hubei Sanonda, which is also a ChemChina subsidiary, last September.
Earlier this month, Adama inaugurated a new R&D center in Nanjing, which it said is China’s life science and biotech focal point. The center will develop new products and formulations, improve existing manufacturing processes and support several functions in the country such as registration, marketing, sales as well as various supply chain activities.