Le Gaga Holdings (NASDAQ:GAGA) is Chinese farming corporation which grows vegetables mostly in greenhouses. The company owns and operates 16 farms, which together, consist of 1,257 hectacres of land. The majority of the farms are located in Southern China, and the company sells most of its produce to markets in Southern China. The company uses greenhouses so that it can regulate conditions better, protect against bad weather such as typhoons, and grow during the off season.
The company expects that it will experience growth not only from its competitive strengths but also due to the growth in the industry as a whole. In particular, the prices of vegetables have risen due to increased demand from the middle class. This group has gained wealth in China and have become increasingly aware of health values of a balanced diet. In addition, government subsidies and policies have favorably helped the agricultural industry.
The company's initial public offering of stock on the NASDAQ occurred on October 28, 2010. The company offered 10.9M ADS shares each for $9.50. This was at the high end of the initial price range of $7.5-$9.5. The IPO raised a total of $204M. The lead underwriters of the deal were Bank of America (BAC), and UBS AG (UBS).
The company's total revenue increased from 2008 to 2009. In 2008, the company reported 154M RMB, while in 2009, the company reported 199M RMB. The company's profits also increased over the same period from 38M RMB in 2008 to 60M RMB in 2009.