Chinese dairy firm Liaoning Huishan Dairy is seeking to raise $1bn through initial public offering (IPO) in Hong Kong to increase its herd and improve milk yields.
The milk producer is firming up plans to launch pre-deal marketing work on its IPO if its gets approval from the Hong Kong Stock Exchange's listing committee, according to sources familiar with the matter.
The company, which already has 110,000 dairy herd, could raise its cattle heads to 500,000 with the IPO proceeds, the source said.
Deutsche Bank, Goldman Sachs and UBS have been appointed to lead the IPO, reported IFR, a Thomson Reuters publication.
In 2012, Liaoning Huishan announced plans to raise $800m to $1bn through an IPO and invited banks to submit proposals to handle the IPO on the Hong Kong Stock Exchange.
Chinese dairy manufacturers have been trying to restore trust among consumers as they are heavily relying on foreign manufacturers for baby formula after the tainted milk controversy in 2008, in which 22 dairy companies were implicated for using the industrial chemical melamine in milk and infant formula.
