Synlait Milk Limited, Bright Dairy's subsidiary in New Zealand, was listed on the New Zealand Stock Exchange with the stock code of SML.
After the IPO of Synlait Milk Limited, China-based Bright Dairy holds a 39.12% stake in this New Zealand firm and it is still the largest shareholder of the company. So far, Bright Dairy is the first Chinese dairy company that acquired an overseas milk source provider and promoted its successful IPO.
Bright Dairy revealed that the capital raised during the IPO will be used to pay off Synlait's existing bank loans and to sign more favorable loan agreements so as to improve its lactoferrin production equipment, infant formula canning product lines, warehouses, laboratories, butter factories, and drying towers. The remaining capital will be used to supplement its working capital.
Synlait Milk Limited is one of the five independent dairy processing companies in New Zealand and it is mainly engaged in milk powder processing businesses. Its Pure Canterbury brand was launched in the Chinese market at the end of 2011 as a high-end infant formula product of Bright Dairy. With the completion of Synlait's new plant, the company is expected to produce 50,000 tons of Pure Canterbury infant formula.