New Zealand's Synlait to hold initial public offer

Canterbury-based dairy group, Synlait Milk Ltd., plans to hold an initial public offering (IPO) in order to raise funds for expansion.

Synlait plans to list on the NZX.

The final terms of the offer have yet to be determined but the proposed IPO is likely to comprise three parts - an offer to institutions, to clients of NZX firms and to suppliers and staff.

The offer is likely to comprise a mix of new ordinary shares issued by Synlait Milk and existing ordinary shares sold by Synlait Ltd.

Most of the funds raised will be used to build a second milk processing plant on Synlait Milk's existing site at Dunsandel, Canterbury, doubling its capacity to process raw milk into a variety of milk powders for export.

The prospectus is due later this month. First NZ Capital Ltd has been appointed lead manager for the offer.