strong-demand-for-mengniu-dairy-shares

Strong demand for Mengniu Dairy shares

The dairy products manufacturer sets the price of its placement at the top of the range. The deal piggybacks on strong annual results published last week.
China Mengniu Dairy shares worth HK$2.71 billion $347 million changed hands at the end of last week through a placement of existing shares. The deal was priced at the top of the offering range, or at a 3.4% discount to the latest market price.

The main vendor was Yinniu, a substantial shareholder of Mengniu, which sold 98.1 million of the 112.9 million shares on offer. Yinniu then bought back 57.5 million new shares at the same price, ensuring that the dairy product manufacturer was also able to raise HK$1.38 billion $177million in fresh cash from the transaction. Mengniu is held mainly by members of its senior management

The shares were offered at a...
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