China Youran Dairy said to have raised $643m in HK IPO

A cow in a Chinese dairy farm. Photo: Bloomberg

China Youran Dairy Group raised $643 million in its Hong Kong initial public offering (IPO) by pricing its shares at the bottom of an indicated price range at HK$6.98 each, according to two sources with direct knowledge of the matter.

China Youran did not immediately respond to a request for comment. The sources could not be named as the information was not yet public.

The company had flagged its shares would be priced between $HK6.98 to $HK8.66 each, according to regulatory filings when the deal launched on Monday.

At the top of that range, Youran would have raised $800m.

The demand from investors was weaker than anticipated because the dairy industry was not seen as a hot sector, according to one source with direct knowledge of the matter who did not have permission to speak to media.

China Youran, backed by private equity firm PAG, was spun off from Inner Mongolia Yili Industrial Group.

It bought two farming hubs in Ying and Yutian counties for NZ$513 million ($368.7 million) owned by New Zealand’s Fonterra last year.

China is the world’s third-largest milk producer, but last year’s 34 million tonnes of output only met about 70% of domestic needs.

Just over 200 new Chinese dairy farm projects were announced last year, according to consultancy Beijing Orient Dairy.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.