Media Release: Keytone Dairy completes fund raising for ASX IPO

Posted on July 12th, by Bourse Communications in News and Announcements. Comments Off on Media Release: Keytone Dairy completes fund raising for ASX IPO

  • A New Zealand based manufacturer, packer and exporter of powdered dairy products has raised A$15 million as part of its IPO to facilitate an ASX listing
  • Demand significantly exceeded the maximum raise (including oversubscriptions) of A$15 million
  • Participation from a number of domestic Australian and offshore institutions

Keytone Dairy Corporation Ltd (“Keytone Dairy”), has completed the fund raising for its proposed listing on the Australian Securities Exchange (“ASX”) via an Initial Public Offering (“IPO”). Demand for shares in KTD significantly exceeded the maximum fund raising of A$12 million (up to A$15 million with oversubscriptions) and as a result scale backs on the number of applications received have been applied.

Keytone Dairy conducted a targeted marketing campaign in Australia, New Zealand and Asia, and has attracted a number of institutional investors to its register. These include institutions already familiar with the powdered dairy market, as well as institutions with no prior investments in the sector that were attracted to the powdered dairy sector dynamics, as well as the growth potential of Keytone Dairy. Peloton Capital acted as lead broker to the IPO.

Use of funds
Upon listing, Keytone Dairy will have a market capitalisation of A$30 million (based on the IPO issue price of $0.20 per share). Funds from the IPO will be used primarily to:

  • Expand Keytone Dairy’s manufacturing base from its one existing facility (thus substantially expanding its production capacity)
  • Expand Keytone Dairy’s product range
  • Expand Keytone Dairy’s existing distribution network
  • Develop distribution in additional geographic markets

Bernard Kavanagh, Keytone Dairy’s Non-Executive Chairman and dairy industry veteran commented:

“We are extremely pleased with the response we have received to the Keytone Dairy offer from both institutional and retail investors in Australia and offshore. This is a very exciting time for Keytone Dairy and we warmly welcome all our new shareholders to the register.”

James Gong, Managing Director and Chief Executive Officer, said:

“We believe that the ASX listing will accelerate Keytone Dairy’s growth. Keytone Dairy has already purchased land for two new manufacturing facilities it plans to build, in addition to its purpose built existing Christchurch facility. Once completed, these facilities will enable Keytone Dairy to both increase its capacity and expand into a number of new products, to meet customer demand. Importantly, the new facilities will enable the Company to meet demand from high-volume customers in China and other Asian countries.”

Selected examples of Keytone Dairy’s proprietary product range

Selected examples of private label brands manufactured by Keytone Dairy

Keytone Dairy background
As part of the IPO, Keytone Dairy will acquire Keytone Enterprises (NZ) Company Limited (“Keytone NZ”) which is a profitable New Zealand-based manufacturer, packer and exporter of dairy and nutrition blended products, with a focus on powdered dairy products. Since 2014, Keytone NZ has been using its proprietary manufacturing facility in Christchurch, New Zealand, and has commercialised whole and skim milk powder as well as other dairy powder blends under its proprietary brands. Keytone NZ also contract-packs a range of powdered dairy products for major supermarkets, retail chains, dairy producers and other customers, in New Zealand and China, under their private label brands.

Keytone NZ’s products are exported globally, including to China, for sale in a variety of channels, including major supermarket chains, premium retail channels and online marketplaces. Keytone NZ’s customers and distribution channels include, New World, PAK’nSAVE, Countdown (Woolworths New Zealand subsidiary), Dairyworks New Zealand, Metro, Guangzhou Dept. & Friendship Store, HalsoKraft,, and

The offer of ordinary shares by Keytone Dairy in Australia and to qualifying investors outside of Australia is made under a prospectus dated 30 April 2018 and a supplementary prospectus dated 5 June 2018 (together the “Prospectus”) which have been lodged with the Australian Securities and Investments Commission. The Prospectus is available and can be obtained from A copy of the Prospectus can also be requested from Keytone Dairy’s Chief Financial Officer Jourdan Thompson on the contact details below.

For further information please contact:

Jourdan Thompson, Chief Financial Officer
Keytone Dairy Corporation Limited
T: +612 9299 9690
E: [email protected]

Rod North, Managing Director
Bourse Communications Pty Ltd
T: +613 9510 8309, M: +61 408 670 706
E: [email protected]

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