Chinese infant-formula maker Yashili International Holdings is hoping to raise up to US$458 million in an initial public offering on the Hong Kong stock exchange this month, the Wall Street Journal reported. The firm will offer 644 million shares at a tentative price of US$0.457 each. If demand seems particularly strong, it could expand the offer size by a further 96.6 million shares. Yashili was one of 22 Chinese firms affected by a 2008 scandal when milk tainted with melamine, an industrial chemical that can cause kidney stones, was found in its supply chain. In 2009, US private equity outfit Carlyle Group purchased a 17.5% stake in Yashili, intending to clean up its safety standards and reputation within China’s domestic market.
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