June 24, 2009 (FinancialWire) — Duoyuan Global Water Inc. (NYSE: DGW) said that its initial public offering of 5.5 million American depositary shares, representing 11 million ordinary shares, was priced at $16 per ADS. Piper Jaffray & Co. (NYSE: PJC) is acting as the sole book running manager.

The company has granted the underwriters a 30-day option to purchase up to an additional 825,000 ADSs to cover over-allotments. All of the ADSs sold in this offering were sold by the company. Duoyuan Global will see gross proceeds of around $88.0 million.

Duoyuan Global plans to use the net proceeds from the offering to improve and upgrade existing manufacturing facilities and production lines, build new manufacturing facilities and production lines, produce new water treatment products, build a research and development laboratory, fund potential acquisitions of complementary businesses and for general corporate purposes.

Beijing-based Duoyuan Global Water is a domestic water treatment equipment supplier.

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