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.
A year after union officials alleged Fyffes abused workers on plantations in Central America - and called on the produce giant to be kicked out of the Ethical Trading Initiative forum - the company is...
Much of the chatter about where 3G Capital could look next has centred on packaged food - but might the private-equity fund be about to extend its foodservice empire?...
Headlines that Mead Johnson's board has backed Reckitt Benckiser's takeover bid will no doubt overshadow the other news on the group this week – that it is facing a US lawsuit from a “whistle blower” ...
Kantar Worldpanel issued its monthly supermarket share data in the UK this morning - and the numbers showed a change in the identity of the country's top five food retailers....
- Focus: Nestle CEO plan to balance sales, earnings
- Does Kraft Heinz want to swallow Unilever whole?
- Will Kellogg's DSD exit help it grow in US snacks?
- Comment: Meal kits in US - don't believe the hype
- Is Mondelez's margin target hurting sales?
- Nestle plans restructuring as 2016 profit misses
- Kraft Heinz pursuing Unilever in takeover move
- Danone eyes efficiency, agility with new structure
- Kraft Heinz returns to organic growth, ups margins
- Danone sales dampened by Europe, China