Blog: NZ dairy Synlait Milk makes solid debut on stock market
Dean Best | 23 July 2013
Down in New Zealand today, dairy ingredients and infant formula firm Synlait Milk took its bow on the country's stock exchange - and its shares finished significant above the IPO price.
Synlait's shares closed at NZ$2.74 when trading finished, up sharply from the listing price of NZ$2.20.
The company launched the listing to fund a series of programmes that it says will speed up the growth of its nutritionals products and infant formula businesses. Synlait is, for instance, investing to improve its production of lactoferrin. The move follows contract wins with YinQiao Xi'An, the largest dairy manufacturer in north western China, Bright Food and New Zealand milk firm A2 Corp. Demand for lactoferrin is being driven by the rapid expansion of the Chinese infant formula market.
And it is the prospects for Synlait in Asia that has likely got investors interested in driven up its shares today. Synlait will face intense competition from a raft of dairy companies, not least those in its own backyard like New Zealand's Fonterra and Australia's Murray Goulburn.
But investors are betting Synlait can milk the buoyant dairy markets in Asia and can look to the likes of China's Bright Dairy (which retains a 39% stake in the company) and FrieslandCampina (which snapped up a chunk of the business ahead of the IPO) which have put their money that it can.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Interview: Mondelez eyes sweet success in China
- What next for Bernard Matthews? - comment
- How food companies involve staff in sustainability
- ConAgra acquires Frontera Foods' "gourmet" brands
- Aryzta FY profits fall
- Nestle close to finalising Garoto deal
- Nestle revamps foodservice arm
- Nestle launches Nesquik Protein Plus for adults
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Fast Food Restaurants in the US - Industry Market Research Report