October 2, 2012
China's dairy company, Liaoning Huishan Holdings, plans to raise up to US$1 billion in funds through an initial public offering and is inviting banks to submit proposals to handle the IPO on the Hong Kong Stock Exchange by October 6.
This move comes when the dairy industry in China is struggling to re-establish its image after a series of tainted milk scandal since 2008. Liaoning Huishan Holdings expects to list on the Hong Kong stock exchange next year, possibly by the second half.
Last year, the company received an investment of US$290 million from several investors, including Hong Kong tycoon, Cheng Yu-tung.
In order to allay fears, Liaoning Huishan plans to import heifers from Australia and grass from California. The dairy firm intends to raise its herd size to about 400,000, which is likely to take annual milk production to two million tonnes.
With a history of more than 60 years, Huishan is the largest producer of dairy products in Northeast China.