Wilmar's China unit IPO raises $2.8b amid hot demand

The long-awaited initial public offering (IPO) of Wilmar International's China unit has raised about 13.93 billion yuan (S$2.8 billion) after the close of applications last Friday, the company announced.

Wilmar said last Thursday that the listing of Yihai Kerry Arawana was expected to raise 13.9 billion yuan, with an issue price of 25.7 yuan a share.

Investors were upbeat about the proposed listing on the Shenzhen Stock Exchange ChiNext Board.

IPO shares for offline investors were oversubscribed by 600.5 times, raising 5.82 billion yuan. Stock for online retail investors was oversubscribed by about 1,750 times, raising 3.9 billion yuan. Strategic investors accounted for 4.18 billion yuan.

Wilmar had previously said these strategic investors would constitute 20 state-owned funds, sovereign wealth funds and insurance companies that have collectively been allocated 30 per cent of the IPO shares.

These shares will be subject to a one-year moratorium on transfer, beginning from the first trading date. Singapore sovereign wealth fund GIC was among the strategic investors and was set to be allotted 472.5 million yuan.

Although the proposed listing is slated to take place by the middle of next month, Wilmar has again stressed that there is "no certainty" it will proceed as it is still subject to prevailing market conditions. Wilmar shares closed up 0.23 per cent at $4.41 yesterday.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on September 29, 2020, with the headline 'Wilmar's China unit IPO raises $2.8b amid hot demand'. Print Edition | Subscribe