Sept. 19 (Bloomberg) -- China Huishan Dairy Holdings Co., the milk producer backed by billionaire Cheng Yu-tung, and shareholders raised $1.3 billion in an initial public offering in Hong Kong, said two people with knowledge of the matter.
Huishan Dairy and investors sold 3.8 billion shares at HK$2.67 apiece, the top end of a marketed range, said the people, who asked not to be identified because the information is private. The shares were originally offered at HK$2.28 to HK$2.67 each, according to an IPO prospectus.
Huishan Dairy, based in Shenyang city in northeast China, was the first Hong Kong IPO of at least $1 billion to raise the maximum sought since July 2011, data compiled by Bloomberg show. The benchmark Hang Seng Index jumped as much as 1.8 percent today to a seven-month high after the Federal Reserve refrained from cutting stimulus.
The company completed the biggest Hong Kong IPO since May, when Sinopec Engineering Group Co. raised $1.8 billion, according to data compiled by Bloomberg. The share sale values Huishan Dairy at 17 times estimated 2014 earnings, the people said. The company will start trading on Sept. 27, the prospectus shows.
China Modern Dairy Holdings Ltd., the country’s biggest raw-milk producer, trades at 17.4 times estimated 2014 profit, data compiled by Bloomberg show. The company, which raised $447 million through a Hong Kong IPO in November 2010, has fallen 5.5 percent from its offer price, the data show.
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