Synlait Milk details IPO
MEDIA RELEASE
24 June 2013
Synlait Milk details IPO
Synlait Milk Limited has today registered a combined investment statement and prospectus dated 24 June 2013 (Offer Document) seeking to raise $75 million new primary capital. In addition, the initial public offering (Offer) will include a secondary sell-down indicatively set at $45 million. The final size of the secondary sell-down will be determined as part of the bookbuild process and will likely vary depending on the price achieved. On completion of the Offer, Synlait Milk will list on the NZX Main Board under the stock code ‘SML’. The Offer Document is available at www.synlait.com.
The indicative price range for the Offer
of $2.05 to $2.65 per share will give the Company a market
capitalisation of $305 - $372 million on listing.
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.
Synlait Milk Managing Director and co-founder John Penno says, “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.”
“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.
Indicative
Timetable
Bookbuild, pricing and allocation 8/9 July
2013
Final Price announcement 10 July 2013
Opening Date 10 July 2013
Closing Date 5.00pm, 19
July 2013
Allotment Date 23 July 2013
Quotation and
trading of Shares expected to commence on the NZX Main
Board 23 July 2013
Mailing of holding statements 25 July
2013
These dates are indicative only and may
change.
ENDS