July 11 -- Dahu Aquaculture (600257), a company which breeds carp and herring, intends to raise between 252 million yuan and 360 million yuan by issuing 35-50 million shares to its controlling shareholder, Hunan Hongxin Holding, at 7.21 yuan per share, reports China Securities Journal, citing a company filing.

Funds raised will be used to fund the breeding of Chinese softshell turtles, fish processing and cold chain logistics.

Hongxin Holding currently holds 92.74 million shares, or a 21.72 percent stake in Dahu Aquaculture.

After the share purchase, it will hold 128-143 million shares in the listed company, accounting for a 28-30 percent stake.

Yang Ming, the board secretary of Dahu Aquaculture, said there is a huge market for freshwater fish following the oil spill in Mexico and the nuclear disaster in Japan.

China exported 7.16 million tons of freshwater products with total value of $20.364 billion in 2010.

Shares of the company rose by its daily limit of 10.02 percent to close the morning session at 9.22 yuan.

Source:Capitalvue