New Zealand dairy ingredients and infant formula firm Synlait Milk, in which China’s Bright Food owns 51%, is considering listing on the stock market.

Synlait Milk is mulling an IPO on the New Zealand stock exchange, it said today (14 May).

Synlait Ltd, a private New Zealand company part-owned by Japan’s Mitsui, holds the other 49% of Synlait Milk.

Prior to the IPO, Synlait Ltd said it would distribute its shares in Synlait Milk to its shareholders.

As part of the flotation, Synlait Milk plans to offer existing Synlait Ltd investors the opportunity to sell any of their shares in the dairy firm. Bright Food, which paid CNY382m (US$62.2m) for 51% of Synlait Milk in 2010, is expected to retain its full investment in Synlait Milk, the New Zealand firm said.

The proceeds from an IPO would be used to finance Synlait Milk’s growth, including the building of a new packaging plant. It would also help the firm refinance its debt, it said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last week, Synlait Milk said it would invest to improve its production of lactoferrin. The move follows some significant 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, the group added.