Replies to post #49408 on China Growth Stocks

[ratobranco]

PUDA - Completely agree here. Don't touch it until you know the offering price. This will likely play out over many weeks. The upside is limited until the offer comes out, the downside, unfortunately, is not.

[viking86]

PUDA: fyi last time the S3 was filed in Dec, a prospectus came out in Jan (off memory) when the stock traded near $8. The offering was closed upon in mid Febr 18 with 2.8m+ shares at $4.75/sh. The stock dipped to a low of about $5 and recovered to $8 after the closing.


On February 11, 2010, Puda Coal, Inc. (the “ Company ”) entered into an Underwriting Agreement (the “ Underwriting Agreement ”) with Brean Murray, Carret & Co., LLC and Newbridge Securities Corporation (collectively, the “ Underwriters ”), for the sale by the Company to the Underwriters (the “ Offering ”) of 2,855,652 shares (the “ Primary Shares ”) of the Company’s common stock, par value $0.001 per share (the “ Common Stock ”). The Offering of the Primary Shares is expected to close on or about February 18, 2010, subject to customary closing conditions. The Primary Shares are being sold to the public at a price of $4.75 per share. The Company has granted the Underwriters a 30-day option to purchase an aggregate of 428,348 additional shares of Common Stock. On February 16, 2010 (the “Overallotment Shares”), the Underwriters exercised the option in full. The Offering of the Overallotment Shares is expected to close on the same day that the Offering of Primary Shares will be closed. The net proceeds are expected to be approximately $14,663,060 to the Company (including the proceeds from the sale of the Overallotment Shares) after deducting underwriting commissions and estimated expenses payable by the Company associated with the Offering.