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Agricultural IPO

Written By Brianna Panzica

Posted July 25, 2011

Uruguayan agricultural company Union Agriculture Group Corp filed for an IPO at the beginning of July, and the IPO is now scheduled for Wednesday, July 27.

When the initial paperwork was filed, the company had plans for an initial public offering worth $287.5 million in common shares.

The company, based in Montevideo, Uruguay, is the nation’s largest agricultural landholding company.

According to Seeking Alpha, the company’s main output is in crops such as soybeans or wheat, rice, dairy, cattle, sheep, and other products like blueberries and honey.

They also develop land for agricultural output, as the Wall Street Journal reports.

Union Agriculture Group Corp began operations in January 2008. In 2010, they made $1.6 million in sales from produce, according to the article.

Now, as the IPO date is just days away, Union Agriculture has announced that it expects to rein in around $200 million from the IPO, selling 14.3 million shares at a range of $13 to $15 per share.

At the mid-range, the report states, market value for the company will be at $735 million.

The company plans to be listed under the symbol UAGR on the New York Stock Exchange.

Proceeds from the IPO will go to acquiring new land, repaying money borrowed, and the remainder to working capital.

Union Agriculture’s goal is to eventually increase landholdings to approximately 395,368 acres.

The IPO’s main underwriters are Credit Suisse (NYSE: CS) and JP Morgan (NYSE: JPM).

Keep an eye out Wednesday for UAGR’s IPO.

That’s all for now,


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