Mandarin cider maker Bojun Agriculture will list on the ASX today after raising $7.6 million in an initial public offering.

Brewed from only the finest Nanfeng “emperor’s choice” mandarins, Bonjun’s cider vinegar is lauded in China for health benefits such as improved gut health and anti-ageing.

Bojun (ASX:BAH) also makes mandarin cider vinegar confectionary and a soft drink for children.

Bojun raised $7.6 million selling shares at 30c each for an initial market cap of $36.4 million.

Chairman and former NSW deputy premier Andrew Stoner told Stockhead the money would be used to speed up market expansion.

“To go fully national in China is the goal,” Mr Stoner said.

“We have a presence in nine of 30 provinces already. [Even] if we continue to focus just on those, we will have a market 20 times the size of Australia.

“The size of China’s market is mind-boggling, The confectionary market is worth $50 billion annually and the demand for fruit cider vinegar is growing at 20 per cent per annum.”

Chairman Andrew Stoner was formerly the deputy premier of NSW. Picture: Getty.
Bojun chairman and former deputy premier Andrew Stoner. Pic: Getty.

Apple cider vinegar is often touted for its health benefits, but Bojun believes it is the first brewer to ferment mandarins for this purpose. Bojun owns a patent for the process in China and plans to register trademarks across the globe.

It might be a while before the characteristic vinegar drink is available in Australia though. Bojun is targeting  markets such as Korea and Japan where locals apparently have a taste for the drink.

Currently all mandarins are sourced from China. Bojun owns large orchards in Nanfeng, a town in the south-central province of Jianxi.

Mr Stoner — who quit politics in 2014 to spend more time with his family — is keen on adding to production with an Australian facility, acknowledging the value of “Australian Made”.

“To be able to say, ‘made wholly and solely in Australia’, even if the products become more expensive, that is a viable transition,” he said.

“Chinese consumers are prepared to pay more for the quality and safety associated with that… we could boost supply so that we can take on those remaining 20 provinces with the added advantage of an Australian reputation.”

The company has already signed a couple of deals in Australia for joint research – one with primary industries NSW but also with a fruit producing company to access fruit.

Bojun China recorded revenues of $61,000 last financial year and $11,000 in earnings before tax.