w Zealand infant formula manufacturer Synlait Milk has launched an IPO (initial public offering) of shares designed to raise a total of $NZ120 million. When the offer is completed, Synlait will list on the NZX Main Board stock exchange.The new primary capital of $75 million is being raised to enable the funding of Synlait Milk’s growth initiatives. Proceeds will be applied to repay Synlait Milk’s existing debt facilities which will be refinanced in conjunction with the IPO. Synlait Milk’s growth initiatives include:
• a new a Lactoferrin extraction and purification plant. Lactoferrin is an important ingredient in some of Synlait Milk’s key infant formula products;
• an onsite blending and consumer packaging plant;
• a 10,000 square metre dry store;
• a quality testing laboratory;
• an Ammix butter plant; and
• a new spray dryer capable of producing a full range of powder products to enable continued volume growth and year round production of infant formula products.
“We are pleased with where the company has got to, and are ready to accelerate the development of our promising Infant Formula and Nutritional products business,” said Synlait Milk managing director and co-founder John Penno.”Since 2010 the company has had the benefit of strong support from Bright Dairy and Food Co., Ltd (Bright Dairy) as a cornerstone shareholder. Bright Dairy is a long established Company in China and has provided Synlait Milk with valuable strategic insights into that important market. Bright Dairy also became an early customer for our fully-formulated infant formula.”
Bright Dairy has elected not to sell any of its shares into the offer and will retain its current shareholding. As a result Bright Dairy’s percentage holding is expected to reduce post IPO from 51 per cent currently to approximately 40 per cent, dependent on the final price of the shares offered.
