China Youran Dairy estimates $3.2b net proceeds in global offering

It set its offer price at $6.98 per share.

China Youran Dairy estimated its net proceeds at approximately $3.23b after it priced its shares at $6.98 each.

The company registered 28,283 valid applications for a total of 266.5 million Hong Kong public shares, which is 3.73 time more than the 71.54 million shares initially offered.

Its international offering was also over-subscribed by 3.88 times. The final number of offer shares is 643.8 million, which is 90% higher than the shares initially offered under the global offering.

Of the $3.23b, China Youran will earmark 75% or $2.42b for investment projects over the next two years, including building new dairy farms and a feed mill amongst others.

Some 15% or $486m will be used to buy dairy cows, whilst 10% or $324m will be for working capital.