Synlait Milk Ltd. said Wednesday it has set a final price of 2.20 New Zealand dollars (US$1.73) a share for its initial public offering that opens Wednesday.
Synlait Milk Chairman Graeme Milne said the company had an «excellent response» to its bookbuild process that took place Monday and Tuesday and will have a market capitalization of about NZ$322 million after the IPO. The IPO includes NZ$75 million of new capital and NZ$38.7 million from a secondary selldown from existing Synlait Ltd. investors.
Synlait Milk is 51% owned by China’s Bright Dairy & Food Co. (600597.SH) and 49% owned by Synlait Ltd. The Chinese company, a listed subsidiary of China’s government-owned Bright Food Group Co., has elected not to sell any of its shares into the offer, Synlait Milk said previously.
On Wednesday, it said Bright Dairy’s holding is expected to be reduced post-IPO to 39.1%.
The offer closes July 19, and trading is expected to begin July 23.
The dairy industry is the backbone of New Zealand’s economy, contributing around a quarter of the country’s annual exports. Synlait’s IPO follows the November listing of the Fonterra Shareholders Fund (FSF.NZ) by New Zealand dairy giant Fonterra Co-Operative Group (FCG.NZ). That deal raised NZ$525 million, and since then, units in Fonterra Shareholders Fund have rallied 34% to NZ$7.37 a share.
Source: WSJ
