New Zealand-based Synlait Milk is evaluating plans for an initial public offering (IPO) , as part of its efforts to fund expansion and repay its debt.
The company has not disclosed the amount it was looking to raise in the IPO.
Currently, Synlait Milk is 49% owned by Synlait Limited and 51% owned by China's Bright Dairy and Food. The Chinese firm had acquired the stake in Synlait Milk in 2010 for NZ$82m ($67.8m).
As part of the proposed IPO, Synlait Milk plans to offer existing Synlait Limited shareholders the opportunity to sell some or all of their shares in Synlait Milk.
The company stated that the proceeds of any offer will be used to support various growth initiatives including the construction of a new packaging plant, and to facilitate refinancing its debt position.
Synlait Milk appointed First NZ Capital and Goldman Sachs as Joint Lead Managers of the proposed IPO.
Bright Dairy is expected to retain its full investment in Synlait Milk.
Synlait, which started operations in 2000, processes over 500 million liters of milk per annum. The company posted $6.3m in net earnings after tax for the year ended 31 July 2012.
