SYDNEY, Dec 16 (Reuters) - China's second-largest citrus fruit producer, Dongfang Modern Agriculture DFM.AX , will use some of the proceeds from its Australian listing to more than double the land it owns at home.
The move, the first such step by a Chinese agricultural firm, comes as Australia increasingly emerges as a destination for companies in China looking to raise capital as a lengthy wait and market volatility discourage them from listing at home.
Dongfang Modern said in a statement that it was buying 5,270 hectares (13,022 acres) of land via two deals in the province of Jiangxi for A$106 million ($76 million). The company will own more than 8,000 hectares after the deals are completed.
The firm said the investment would be partially funded from the nearly A$40 million it raised through its listing on the Australian Securities Exchange in October. It had targeted a capital raising of A$50 million.
"We are delivering upon the expansion plans outlined within our IPO prospectus, and will seek further opportunities to grow within the world's largest agribusiness sector, China," said Executive Chairman Hongwei Cai.
Meanwhile, China Dairy Corporation, a privately owned milk producer plans a A$20 million listing to fund Australian investment and domestic land expansion.
Chinese companies listing in Australia must overcome language barriers and a reluctance by Australian investors to embrace an investment prospect which has underperformed severely.
Just a handful of Chinese companies that have listed on the ASX since 1996 remain trading at or above their listing price, Reuters data shows.
($1 = 1.3895 Australian dollars)