Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Keytone Dairy Corp launches prospectus to raise A$15M

Keytone Dairy Corp launches prospectus to raise A$15M, list on ASX

By Rebecca Howard

May 10 (BusinessDesk) - Keytone Dairy Corp, which owns a dairy factory in Christchurch, has launched a prospectus to raise up to A$15 million and list on the Australian Securities Exchange via an initial public offering.

It is aiming to raise A$12 million or up to A$15 million with oversubscriptions to facilitate a listing on the ASX through the issue of 60 million (up to 75 million with oversubscriptions) shares at an issue price of 20 Australian cents apiece, with the offer due to close on June 1. Peloton Capital is the lead manager for the sale.

Once listed, the company will have a market capitalisation of A$30 million, based on the IPO issue price and after the maximum subscription of A$15 million is raised, it said in a statement.

Keytone Dairy was created last September to acquire Keytone Enterprises, which is incorporated in New Zealand, and to manage and operate Keytone’s business.

In April it entered an exchange deed with the current shareholders of Keytone to acquire 100 percent of the issued share capital in consideration for the issue of an aggregate of 75,000,000 shares and 49,500,000 performance shares.

If the full oversubscriptions are raised the current shareholders will own approximately 50 percent of the shares. According to the Companies' Office, shareholders include New York-based investor Bergen Asset Management's Long Hill Capital, which has 44 percent, chief operating officer Vivienne Cheung, with 34 percent, managing director James Gong, with 16.8 percent and general counsel Richard Fyers, with 5 percent.

Keytone built a state-of-the-art dry powder facility in Sockburn in 2013, where it blends and packages milk powder, sheep milk powder, kiwifruit milk powder and lactoferrin under its own brands as well as manufacturing a range of powdered dairy products for supermarkets and other customers under their own private label brands. The company last year bought two adjacent sites in the Izone Industrial Park in Rolleston where it plans to build new manufacturing facilities enabling it to expand into new products and markets.

Funds raised from the IPO will be used to expand its manufacturing base from its one existing facility, substantially expand its product range into complementary high-margin, value-added products, expand its existing distribution network and develop distribution in additional geographic markets.

“We believe that the ASX listing will turbocharge Keytone Dairy’s growth. Keytone Dairy has already purchased land for two new manufacturing facilities it plans to build, in addition to its purpose-built existing Christchurch facility," Australian-based non-executive chair Bernard Kavanagh said in a statement.

He previously told BusinessDesk that the company chose a listing in Australia over New Zealand because its key shareholder was already familiar with the ASX market and saw more opportunity for tapping investors in Australia.

Keytone Dairy holds a China Certification and Accreditation Administration (CNCA) license, a pre-requisite for the importation of dairy products into the People’s Republic of China. It is also Halal-certified, enabling exports into Muslim countries.

Keytone Dairy’s products are exported globally, including to China, for sale in a variety of channels, including major supermarket chains, premium retail channels and online marketplaces.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Building Activity Down In September Quarter
The volume of building activity in New Zealand fell 8.6 percent in the September 2021 quarter, compared with the June 2021 quarter, Stats NZ said today. Residential building activity fell by 6.4 percent in the September 2021 quarter, while non-residential building activity fell 12 percent... More>>


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>



Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>