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Wilmar expects approval for YKA IPO next year: Reuters
Posted on Thursday, 21 November 2019 10:36
Wilmar International is still working on floating its Chinese business, Yihai Kerry Arawana Holdings (YKA), on the mainland, the Singaporean agribusiness told Reuters in an email.
The company said in response to the news provider’s inquiry about the status of the initial public offering (IPO) it is waiting for approval from regulators and hopes to receive the green light by early 2020.
Reuters’ query comes after Wilmar announced in July the China Securities Regulatory Commission had accepted YKA’s application for a proposed listing on the Shenzhen Stock Exchange.
A subsequent presentation in August showed the group intends to majority control – roughly 89.9 per cent via wholly-owned Bathos – for the foreseeable future.
YKA is touted as one of the largest agribusiness and food processing companies in China and its activities range from the processing and sales of kitchen food to manufacturing feed ingredients.
The group has market-leading positions across various food categories, including oleochemicals, speciality fats, oilseeds crushing and rice and flour milling, according to August’s prospectus.
As of 31st March 2019, it had more than 300 manufacturing plants and 62 production locations across 24 provinces, autonomous regions and municipalities in China.
YKA has an extensive distribution network comprising 31 branches, over 3,400 staff, 300-plus sales offices and 1.08 million points of sale.
The group generated revenue of CNY 167.07 billion (USD 23.75 billion) in the 12 months ended 31st December 2018 and CNY 40.35 billion in Q1 2019.
It posted net profit of CNY 5.13 billion in FY 2018 (FY 2017: CNY 5.00 billion) and CNY 866.00 million in Q1 2019.
YKA’s IPO on Shenzhen’s ChiNext comprises the sale of 542.16 million new shares, which represent a 10.0 per cent stake of the pro forma enlarged capital.
Money raised from the proposed float, which would not include a secondary offering, will fund capital expenditure requirements.
Wilmar expects the IPO would support the growth of the group’s China operations by increasing market visibility and awareness among current and potential customers, investors and the public in China in the agricultural and food processing sectors.
© Zephus Ltd