YuanShengTai Dairy Farm, China’s fourth biggest raw milk producer, priced its €315m Hong Kong IPO near the low end of expectations, leaving some room for gains in its debut, sources familiar with the deal said.
The IPO was the second in Hong Kong in two months from a dairy company and comes amid a surge in capital markets activity in the dairy industry in Greater China, with €3.5bn of mergers and acquisitions and equity deals in 2013.
The IPO got a last minute boost after the Chinese government unveiled major economic reforms last week, including allowing millions of families to have two children in the country’s most significant liberalisation of its strict one-child policy in about three decades.
YuanShengTai ranks fourth among raw milk producers in China. It priced the IPO at HK$2.70 (€0.25) per share compared with the indicated range of $2.49-$3.18, said sources. It offered 1.22bn shares, putting the deal value at $3.29bn (€315m).
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