Keytone Dairy Corporation Ltd (“Keytone Dairy” or “Company”) (pending ASX code: KTD), is pleased to announce that with the market’s impressive response to the Company’s Prospectus offering, Keytone Dairy has successfully closed the capital raising oversubscribed at $15 million and is set to list the Company’s securities on the Australian Securities Exchange (ASX) via an Initial Public Offering (IPO).
Keytone Dairy exceeded the maximum fund raising of A$12 million with an oversubscription of A$15 million through the issuing of 75 million ordinary shares at the issue price of $0.20 to achieve a market cap on listing of $30 million. Demand for shares in Keytone Dairy significantly exceeded the maximum fund raising and as a result scale backs on the number of applications received have been applied.
Keytone Dairy conducted a targeted marketing campaign in Australia, New Zealand and Asia, and has attracted a number of institutional investors to its register. These include institutions already familiar with the powdered dairy market, as well as institutions with no prior investments in the sector that were attracted to the powdered dairy sector dynamics, as well as the growth potential of Keytone Dairy. Peloton Capital acted as lead broker to the IPO.
Funds from the IPO will be used primarily to:
- Expand Keytone Dairy’s manufacturing base from its one existing facility (thus substantially expanding its production capacity)
- Expand Keytone Dairy’s product range
- Expand Keytone Dairy’s existing distribution network
- Develop distribution in additional geographic markets
Bernard Kavanagh, Non-Executive Chairman of Keytone Dairy and dairy industry veteran, said:
“We are extremely pleased with the response we have received to the Keytone Dairy offer from both institutional and retail investors in Australia and offshore. This is a very exciting time for Keytone Dairy and we warmly welcome all our new shareholders to the register.”
James Gong, Managing Director and CEO of Keytone Dairy, said:
“The imminent listing of the Company on the ASX will accelerate Keytone Dairy’s growth.
“The Company has already purchased land for two new manufacturing facilities it plans to build, in addition to its purpose built existing Christchurch facility. Once completed, these facilities will enable Keytone Dairy to both increase its capacity and expand into a number of new products, to meet customer demand. Importantly, the new facilities will enable the Company to meet demand from high-volume customers in China and other Asian countries.”
As part of the IPO, Keytone Dairy will acquire Keytone Enterprises (NZ) Company Limited (“Keytone NZ”) which is a profitable New Zealand-based manufacturer, packer and exporter of dairy and nutrition blended products, with a focus on powdered dairy products. Since 2014, Keytone NZ has been using its proprietary manufacturing facility in Christchurch, New Zealand, and has commercialised whole and skim milk powder as well as other dairy powder blends under its proprietary brands. Keytone NZ also contract-packs a range of powdered dairy products for major supermarkets, retail chains, dairy producers and other customers, in New Zealand and China, under their private label brands.
Keytone NZ’s 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 NZ’s customers and distribution channels include, New World, PAK’nSAVE, Countdown (Woolworths New Zealand subsidiary), Dairyworks New Zealand, Metro, Guangzhou Dept. & Friendship Store, HalsoKraft, JD.com, Tmall.com and VIP.com.
Source: Keytone Dairy