New Zealand dairy ingredients and infant formula firm Synlait Milk has set a final price of NZ$2.20 (US$1.73) per share for its IPO.

Synlait Milk chairman Graeme Milne said the response from New Zealand and international institutions and domestic retail brokers had been "extremely positive". Shares are set to start trading on 23 July.

"We have had an excellent response to our recent roadshow and bookbuild process, and as a result the final price has been set at $2.20 per share. This is a strong market endorsement for the compelling fundamentals of the New Zealand dairy industry and in particular Synlait Milk's growth initiatives to accelerate the development of our infant formula and nutritional products business."

The IPO opens today and follows a two-day bookbuild process. At this final price, Synlait Milk will have a market capitalisation of around NZ$322m on completion.

Bright Dairy, the Chinese group, owns 51% of Synlait Milk and will continue to hold an investment in the business. However, the company will hold around 39.1% on completion of the offer.

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Synlait Milk Limited Initial Public Offer - Final Price Determined

Synlait Milk Limited (“Synlait Milk") has set a Final Price of $2.20 per ordinary share to be offered to institutions and selected NZX firms in its Initial Public Offering ("IPO") which opens on Wednesday 10 July 2013. The Final Price has been set following a bookbuild to institutional investors and NZX Firms on 8 and 9 July 2013. At this Final Price, Synlait Milk will have a market capitalisation of approximately NZ$322 million on completion of the IPO.

Synlait Milk Chairman Graeme Milne said the response from New Zealand and international institutions and New Zealand retail brokers had been extremely positive.

"We have had an excellent response to our recent roadshow and bookbuild process, and as a result the Final Price has been set at $2.20 per share. There was strong support from a wide range of investors, comprising New Zealand and international institutional investors and New Zealand retail 

brokers. This is a strong market endorsement for the compelling fundamentals of the New Zealand dairy industry and in particular Synlait Milk’s growth initiatives to accelerate the development of our Infant Formula and Nutritional products business.”

The IPO comprises $75 million in new capital to repay debt and fund Synlait Milk’s growth initiatives and a secondary offer of $38.7 million being 17.6 million existing shares originating from participating shareholders of Synlait Limited.

Bright Dairy and Food Co., Ltd1 will hold approximately 39.1% shareholding in Synlait Milk following completion of the IPO.

The Offer will open on 10 July 2013 with the Broker Firm Offer closing on 19 July 2013. There will be no general public offer. Investors are encouraged to contact their broker should they wish to participate. Trading of the shares (under the stock code ‘SML’) on the NZX Main Board is expected to commence at 11.00am (NZST) on 23 July 20132

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Synlait Milk Managing Director and co-founder John Penno said the successful completion of the IPO would be another important milestone in the company’s history and would assist Synlait Milk’s growth as a niche producer of higher value dairy ingredients and nutritional products.

“We now look forward to the support of a wider pool of shareholders as we build on the reputation of our staff and suppliers to deliver excellence every step of the way from pasture to some of the world’s leading milk-based health and nutrition companies.”

Synlait Milk has registered a combined Investment Statement and Prospectus dated 24 June 2013 in relation to the IPO, a copy of which can be obtained at www.synlait.com. Applications for shares can only be made using the application form included in the Investment Statement and Prospectus. 

For further information on Synlait Milk please visit www.synlait.com.

Original source: Synlait Milk