PAG-backed China Youran Dairy seeks $300m in pre-IPO funding

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China Youran Dairy Holding Ltd. is working with advisers to raise between $300 million and $400 million in a new funding round before its potential initial public offering, according to people familiar with the situation.

The company has reached out to prospective investors for the latest round, which could give it a valuation of about $2 billion, said the people, who asked not to be identified as the information is private.

Hong Kong-based private equity firm PAG and Inner Mongolia Yili Industrial Group Co. hold 41% and 40% stakes respectively in the dairy product maker, Youran said in an announcement when it acquired the control of another dairy firm last year. PAG invested in Youran in 2016, according to its website.

Deliberations are ongoing and details of Youran’s pre-IPO funding round could still change, according to the people. A representative for PAG declined to comment, while a representative for Yili said the company hasn’t received the relevant information. A representative for Youran didn’t immediately respond to requests for comment.

Founded in 2007, Youran produces and sells fresh milk and engages in related animal farming activities in China. The company’s revenue in 2019 was 8 billion yuan ($1.1 billion) and its net income was around 500 million yuan, according to Yili’s latest annual report. Youran bought a majority stake of Inner Mongolia Saikexing Reproductive Biotechnology Co. last year for more than 22 billion yuan.

Bloomberg

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.

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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. 
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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.