The partial float of Murray Goulburn on the ASX will take effect on Friday - though at a lower price than originally anticipated.
Murray Goulburn chairman Philip Tracy said the $2.10 price of each unit was the lowest in the indicative unit price range, but gave the company a market capitalisation of $1.2 billion.
“As suppliers will be aware, global events of the past week and continuing today, have weighed heavily on financial markets across the world and our capital raising has not been immune to this.
“In this environment, we are very pleased that the IPO has been fully subscribed, albeit at the low end of the indicative price range,” Tracy said.
The dairy co-operative hopes to raise $500 million in new capital to grow the business domestically and internationally to achieve sustainably higher milk prices and returns for share and unitholders.
“We will now be delivering the key capital projects for dairy beverages, consumer cheese and nutritional powders which will further increase MG’s weighting towards higher value-add premium dairy foods and away from volatile bulk commodity markets and prices,” Tracy said.
