The China Securities Regulatory Commission (CSRC) has accepted the application from Wilmar’s 99.99 percent-owned subsidiary Yihai Kerry Arawana Holdings (YKA) for a proposed listing on the Shenzhen Stock Exchange, the commodity trader said in a filing to SGX Friday.
“The proposed listing and Proposed IPO is intended to further the growth of Wilmar’s China operations by increasing its market visibility and awareness among current and potential customers, investors and the public in China in the important agricultural and food processing sectors,” Wilmar said.
“The proposed IPO is also expected to unlock shareholder value for Wilmar,” it added.
YKA is one of China’s largest agribusiness and food processing companies, and its business includes processing and sales of kitchen food, feed ingredients and oleochemicals the filing said.
If the CSRC approves the application, Wilmar plans an IPO of new shares of around 10 percent of YKA’s post-IPO share capital, without a secondary offering, the filing said.
Wilmar will keep the same number of YKA shares and after the IPO, expects to hold 89.99 percent of YKA, the filing said.
The net proceeds will used to fund YKA’s capital expenditure, Wilmar said.
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