Sanderson Farms is to raise $122m, before expenses, from its share offering aimed at raising cash to build two production plants, after pricing the new stock at a minimal discount to market prices.

The poultry group said it would sell the new shares at $53.00 apiece, a discount of only $0.61 to their closing price in New York on Wednesday, if some 7% below their value before the cash call was announced on Monday.

Up to 2.3m new shares will be up for grabs, assuming the underwriters, JP Morgan and Morgan Stanley, exercise an option to take 300,000 shares in so-called over-allotments

Double bill 

Sanderson, whose fortunes have been improved by a craze among sports fans for chicken wings, is to use the cash to pay for the construction of two plants in the US state of North Carolina.

The company has long planned its $121m processing complex Kinston, which is expected to open net year and employ, eventually, up to 1,500 people.

However, the group this week revealed plans for a $94m plant nearby producing cuts including boneless chicken breasts, potentially employing a further 1,100 people after its opening in 2012.