EastBridge Investment Group Corp (OTC:EBIG), a financial services company that provides Asian companies with access to U.S. capital markets, while consistently maintaining an inventory of several Asian IPO clients, will unlock big value for their own shareholders in the wake of successful IPO’s like those of Chinacast Education Corporation (Nasdaq: CAST) and China Agritech Inc. (Nasdaq: CAGC).
EastBridge Investment Group Corp (OTC:EBIG) assists Asian companies with the auditing, legal and investor relations processes to become public companies and achieve listings on U.S. stock exchanges, while also making valuable introductions to investment bankers and accredited investors. In exchange, they receive cash and equity fees that often amount to a 10 to 20 percent equity interest.
The company’s clients are involved in industries as diverse as education, energy and retail distribution, and all are experiencing rapid growth in China’s emerging economy. With a slowdown in the U.S., E.U. and other developed economies, demand for high growth Asian equities remains very strong. As a result, EastBridge offers investors a unique way to capitalize on Asia’s high growth equity markets.
By acquiring equity in these clients at pre-IPO multiples, EastBridge shareholders could see some significant capital gains down the road.
China’s Economy Rapidly Expanding
After overtaking Japan as the world’s second largest economy, China continues to drive forward with 10.3% expansion over the past year alone. Put into prospective, U.S. GDP growth over the same period is estimated to be just 3.2%, and that figure is still being revised lower following what some economists are predicting could become a double-dip recession.
While China still relies on exports to drive its economy, the world’s most populous country is also starting to look domestically for growth. Per capita income for its citizens grew from $350 in 1990 to more than $3,000 by the end of 2008. Assuming a similar growth rate, average national income could reach $8,500 by 2020 and $20,000 by 2030, which could lead to strong domestic consumer spending.
EastBridge Capitalizes on China’s Growth
Companies are the driving force behind growing economies and they require sufficient working capital in order to expand. Since China’s capital markets are just burgeoning, many companies look towards foreign capital markets for fundraising. And the United States stock markets currently represent the largest, most liquid, and most transparent source of capital in the world.
EastBridge Investment Group Corp. helps high-growth Chinese companies access these markets by listing their securities onto U.S. exchanges, forming joint ventures with U.S. companies, and/or accessing traditional merchant banking services. By collecting a 10 to 20 percent equity interest alongside cash fees, shareholders have a unique ability to participate in strong upside potential at pre-IPO valuations.
A Look into EastBridge’s Portfolio
As of August 13, 2010, EastBridge is helping eight clients with the auditing and legal processes involved in becoming a public company in the U.S. Its diverse portfolio of clients across multiple industries minimizes risk for investors while providing unparalleled exposure to one of the fastest growing economies in the world.
These clients include:
- Wonder International Education – A professional and vocational education provider to post junior high and high school students to improve their skills for higher paying jobs.
- Tsingda Education Company – A tutoring and education services provider to elementary, junior high and high school students in China.
- Jinkuizi Science and Technology Company – A manufacturer of environmentally safe fertilizers in China and Southeast Asia.
- Alpha Green Energy Company – A renewable biomass company focused on China’s agricultural industry as a source for raw input.
- Long Whole Enterprises, Ltd. – A precious metal mining company focused on properties in the Democratic Republic of Congo.
- AREM Pacific Corporation – A company that is undergoing a restructuring to enter a new line of business that is currently undisclosed.
- StrayArrow International Limited – A luxury lifestyle and hospitality company located in China.
- Heyuan Dafeng Animal Husbandry Company Limited – An integrated “Green Farming” business specializing in premium hogs, feeds and organic fertilizers production.
EastBridge Prepares to Unlock Value
While none of its clients have yet gone public, EastBridge is rapidly progressing to the point of unlocking value for its own shareholders. Once the clients go public, the company’s equity interests will be salable and shareholders will have a clear glimpse at the profitability and scalability of its business model.
As noted above, EastBridge is in the process of establishing an “Asian Pipeline” which will deliver high growth companies to the U.S. markets. Investors should review the stock now, ahead of any of its’ clients public offerings.