There were also concerns that BioVittoria had been pressured into the listing because of a condition on its capital raising last year.

Andrew McDouall, managing director of McDouall Stuart, which is the lead manager on the offer and also undertook the capital raising, said listing was not a condition of the capital raising but the company would have had to start paying interest to investors by September 30 if it had not been in the process of the public offer.

McDouall said the incentive to list had been his idea. He believed the float was a chance for investors to come in at an early stage. "If we waited six months they could have all the regulatory approvals but would pay more. It's a risk return trade-off. There are many investors that want to get in at the ground floor of great opportunities rather than paying top dollar from a private equity firm."

The company is forecasting a loss for its first three years followed by a net profit of US$1.4 million in 2012 and US$4.36 million in 2013.

LUO HAN

* A type of melon native to China.
* Grows only in southern China
* Chinese Government has banned it from being grown outside the country.
* The fruit isn't eaten but is dried and used in teas as a sweetener and for health remedies.
* In China it is called the longevity fruit and has been eaten for more than 800 years.
* BioVittoria sources the fruit from 5000 farmers and hopes to have a capacity to produce 250 tonnes a year.
* BioVittoria president and man on the ground in China Lan Fusheng is considered to be the national expert in Luo Han production.

By Tamsyn Parker | Email Tamsyn