Chinese infant-formula maker Yashili has outlined plans to list on the Hong Kong Stock Exchange.
Yashili, in which private-equity firm Carlyle Group owns a 17.3% stake, is one of China’s largest infant-formula manufacturers.
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The company was caught up in the 2008 infant-formula contamination scandal in China, when six babies died and hundreds of thousands were made ill when an industrial chemical, melamine, was used to fortify the milk.
The scandal rocked China’s fledgling dairy sector as contaminated milk found its way into the supply chain of many manufacturers. Yashili was among 22 infant-formula makers that failed government tests for contaminated milk.
Since its investment, Carlyle, alongside other investors, have worked with Yashili to improve its supply chain and food-safety controls.
According to Reuters, Yashili is looking to raise up to US$398m from the listing and is selling 644m shares priced at HK$3.55-4.80 each.
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By GlobalDataA spokesperson for Carlyle declined to comment.
