China's largest dairy product maker, Shanghai Bright Dairy & Food, a unit of Shanghai Industrial Holdings, plans to issue more than 100 million Chinese domestic A shares, a source close to the company said, reports Reuters.
An application for the issue of the A shares, to be listed on the Shanghai stock market, is being processed by the China Securities Regulatory Commission, the source said on Tuesday.But he declined to disclose financial details of the issue.
Bright Dairy is 40 per cent held by Shanghai Industrial, a Hong Kong listed conglomerate controlled by the Shanghai city government.Shanghai Dairy Farm also has a 40 per cent stake in Bright Dairy. Danone Asia, Dazhong Transportation and two local Chinese companies each hold a five per cent stake in Bright Dairy.
The company makes, distributes and sells more than 190 dairy related products in China. Danone Asia is a unit of French food group Danone. Oriental Securities is the sponsor of the issue, sources said.