New Zealand dairy company Synlait Milk Ltd is planning to conduct an initial public offer of shares to fund its expansion plans into the booming infant formula market in China. The Chinese controlled company would become a market player in the global demand for food and other consumables market in Asia.
The New Zealand firm's 51% is owned by China's Bright Dairy and Food Ltd. The firm would not stipulate as to the volume of the IPO but said that Bright Dairy would continue to retain its stake in the company.
This proposed IPO comes after the November launch of a NZ$525 million sharetrade fund between Synlait Milk and rival Fonterra. Since the launch of the fund, the values have gained about 14% since its float.
Synlait Milk is co-owned by Synlait Ltd a privately held local company together with the Mitsui & Co. of Japan. One of the brands it launched last year was the Pure Canterbury brand infant formula in China, currently the world's largest consumer of milk and milk formula products.
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