Poor investor response has led Canterbury dairy company Synlait Milk Ltd to call off its initial public offer (IPO) worth $150m, scraping its plans to list its production arm on the stock exchange for the time being.
The firm had appointed First NZ Capital as its lead manager for the offer, comprising three parts namely-offers for institutions, clients of NZX firms, suppliers and staff.
The firm informed the stock exchange, "Synlait received strong support for the IPO from local institutional investors and the lead manager but the overall level of support was insufficient to proceed at this time."
The company was in a process to issue new ordinary shares and some existing shares for arranging capital to finance its second milk processing plant at Dunsandel, Canterbury. The proposed milk plant was aimed to double its processing capacity for making milk power for export purposes.
Meanwhile, Synlait, having stake in at least six mid-Canterbury dairy farms in the region, said that it would come up with future IPO and some other alternative proposal after a suitable time.