Yili seeks to raise US$200m in HK
27 October 2006
Inner Mongolia Yili Industrial Group, the mainland's largest dairy products maker, plans to raise about US$200 million from a secondary listing in Hong Kong next year, the South China Morning Post reported, citing market sources. The company's shares trade on the Shanghai Stock Exchange and have risen 79% this year, closing at 19.96 yuan Thursday. The Shanghai Composite Index has risen 60% over the same period. The China Securities Regulatory Commission last month approved Yili's request to raise US$152 million by selling warrants domestically. The company plans to spend about US$145 million by early 2008 on dairy facilities in western and central China. Demand for dairy products in China is expected to grow 12.8% a year to reach 40 million tonnes by 2010, according to Netherlands-based Rabobank.