New Zealand's Keytone Dairy has raised $15 million in funds for its proposed listing on the ASX via an Initial Public Offering (IPO).

Demand for shares in the powdered dairy products company significantly exceeded the maximum fundraising of $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 attracted a number of institutional investors to its register.

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, as well as expanding its product range, existing distribution network, and distribution in additional geographic markets.

CEO James Gong said he believed the ASX listing would 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. The new facilities will also enable the company to meet demand from high-volume customers in China and other Asian countries.