Keytone Dairy to list on ASX following oversubscribed IPO
Keytone Dairy Corporation is set to list on the ASX today after successfully raising A$15 million through an initial public offering.
Keytone Dairy Corporation (ASX: KTD) will list the company’s securities on the ASX today via IPO.
The New Zealand-based manufacturer, packer and exporter of dairy and nutrition blended products will have a market cap on listing of A$30 million after the capital raising for the company’s prospectus offering closed oversubscribed at A$15 million.
Demand for shares in Keytone Dairy significantly exceeded the maximum fund raising of $12 million with the successful oversubscription of A$15 million raised through the issuing 75 million ordinary shares at the issue price of $0.20.
The company began production of milk powdered in 2013 and, having expanded production, the company now manufactures whole and skim milk powder products under its own brands and powdered milk products for a range of other private labels.
These products are exported globally, including to China, for sale in a variety of channels, including major supermarket chains, premium retail channels and online marketplaces. Keytone Dairy holds the coveted China Certification and Accreditation Administration (CNCA) license, a pre-requisite for importation of dairy products into the People’s Republic of China. It is also Halal-certified, enabling exports into Muslim countries.
Keytone Dairy’s chairman, Bernard Kavanagh, is a dairy industry veteran and former General Manager at Warrnambool Cheese and Butter Factory Co Ltd.
Mr Kavanagh told Small Caps that Keytone Dairy’s listing on the ASX would accelerate the company’s growth. “The company has already purchased land, at Rolleston, near Christchurch, that will be used to build a factory for manufacturing formulated and dairy nutritional products.”
This product expansion is designed to complement Keytone Dairy’s existing whole milk powder and skim milk powder plant in Christchurch.
Mr Kavanagh said “the new plant at Rolleston will allow Keytone Dairy to increase its dairy product manufacturing capacity from 1500 tonnes to 5000 tonnes and assist in meeting customer demand, particularly high-volume customers in China and other Asian countries.”