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Wilmar unit gets China regulator's acceptance of application to list
THE China Securities Regulatory Commission has accepted Yihai Kerry Arawana Holdings' application to list on the Shenzhen Stock Exchange, Wilmar International said on Friday night, putting it on track to list its China subsidiary by the fourth quarter of this year.
The listing, if approved by the Chinese regulator, will see Yihai issuing new shares amounting to about 10 per cent of its total pro forma share capital after the initial public offering (IPO).
Wilmar will retain majority control in Yihai with an expected 89.99 per cent stake post-IPO.
Yihai is one of the largest agribusiness and food processing companies in China. Its business includes the processing and sales of kitchen food, feed ingredients and oleochemicals in China.
The IPO would likely make it one of the largest listed vegetable oil and food ingredient producers by market capitalisation, according to UOB Kay Hian in a June report.
Current China operations contribute about 60 per cent of Wilmar's group profit after tax, UOB Kay Hian wrote.
Wilmar said the listing and IPO would help further the growth of its China operations by increasing its market visibility and awareness among current and potential customers, investors and the public in China.
The IPO is also expected to unlock shareholder value, Wilmar added.
Mainboard-listed Wilmar closed 1.08 per cent higher at S$3.76 on Friday before the announcement.