China-based Huishan Dairy has been approved by the Hong Kong Stock Exchange to raise $1bn through initial public offering (IPO) to increase the size of cattle herd and boost production.
The company will start pre-deal marketing work on its IPO this week and start taking orders from 10 September, according to sources familiar with the matter.
Deutsche Bank, Goldman Sachs and UBS have been appointed to lead the IPO.
Huishan expects to price the deal on 19 September and list in Hong Kong on 26 September. The company plans to use the proceeds from IPO to boost its dairy herd to 500,000 from the current 200,000.
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.
Headquartered in Liaoning province, Huishan Dairy produces milk from cows imported from Australia. The company owns 120,000 cows, grassland, cattle-feed processing facilities and dairy production bases.
