Special Report – Keytone Dairy Corporation Limited (“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 several institutional investors to its register. Peloton Capital acted as Lead Manager to the IPO.

The stock is due to list on the ASX from Wednesday.

Company Overview

Keytone Dairy Corporation Limited is a New Zealand-based, manufacturer and exporter of dairy and nutrition products.  Keytone commenced manufacturing in 2013.

Keytone has successfully commercialised and is currently selling whole and skim milk powder and other dairy powder blends under its proprietary brands, as well as manufacturing and packing a range of powdered dairy products for leading supermarkets, retail chains, dairy producers and other customers under their private label brands.

Keytone has been EBITDA positive for the past four years, and is focused on providing high-margin, value added products for export globally, including China and other Asian countries, as well as domestic sales to major New Zealand supermarkets.

The Company seeks to accelerate its growth, utilising the funds raised in an IPO to expand its manufacturing capabilities and product lines, as well as to penetrate new and existing markets by investing in marketing and distribution capabilities.

Keytone has numerous distribution channels, with its proprietary products already ranged on Chinese e-Commerce giants JD.com and Tmall Global, among others.

Investment Highlights

–  Established, profitable business leveraged to China’s growing middle class and growing per capita dairy consumption

–  Focus on high margin, value added products for export to Asian markets

–   Positioned to capitalise on New Zealand’s global ‘clean and green’ reputation

–  Extensive distribution channels including JD.com and Tmall Global

–  Holds coveted licenses, including the China CNCA registration and Halal certification by the Federation of Islamic Associations of New Zealand (an accredited body recognised by Islamic countries worldwide)

–  In-house product development and manufacturing, using majority New Zealand sourced and produced inputs

–  Quality validated by contract packing for New Zealand supermarkets and larger New Zealand dairy companies

–  Majority of the production is exported

–  A$2.1m revenue in FY to 31 March 2018 & profitable

–  Proven Board and Management with extensive experience in the dairy industry and international trade including former Executive Director, CFO and GM or Warrnambool Cheese and Butter and former Sales and Marketing Manager at Westland Co-Operative Dairy Company

–  A proven profitable platform seeking exponential growth through investment in production capacity and marketing

–  Seeks to grow through capacity and product expansion and an expansion of geographic reach and distribution channels

Use of Funds

Funds will be used 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, and
  • Develop distribution in additional geographic markets.

 

This special report is brought to you by Keytone Dairy.

This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice.

If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.