Keytone Dairy completes fund raising for ASX IPO

By Jim Cornall contact

- Last updated on GMT

Keytone introduced its KeyDairy Goat Milk Powder in May, initially selling into the Chinese market through the online retailer,
Keytone introduced its KeyDairy Goat Milk Powder in May, initially selling into the Chinese market through the online retailer,
New Zealand based manufacturer, packer and exporter of powdered dairy products Keytone Dairy Corporation Ltd has raised A$15m (US$11.1m) as part of its initial public offering (IPO) to facilitate an Australian Securities Exchange (ASX) listing.

Demand for shares in KTD significantly exceeded the maximum fund raising of A$12m/US$8.9m (up to A$15m 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 institutional investors to its register. These include institutions already familiar with the powdered dairy market, as well as institutions with no prior investments in the sector that were attracted to the powdered dairy sector dynamics, as well as the growth potential of Keytone Dairy.

Peloton Capital acted as lead broker to the IPO.

Use of funds

Upon listing, Keytone Dairy will have a market capitalization of A$30m/US$22m (based on the IPO issue price of $0.20 per share). Funds from the IPO 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.

James Gong, managing director and CEO, said the company believes the ASX listing will 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,”​ Gong said.

“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. Importantly, the new facilities will enable the company to meet demand from high-volume customers in China and other Asian countries."


As part of the IPO, Keytone Dairy will acquire Keytone Enterprises (NZ) Company Limited, a New Zealand-based manufacturer, packer and exporter of dairy and nutrition blended products, with a focus on powdered dairy products.

Since 2014, Keytone NZ has been using its proprietary manufacturing facility in Christchurch, New Zealand, and has commercialized whole and skim milk powder as well as other dairy powder blends under its proprietary brands.

Keytone NZ also contract-packs a range of powdered dairy products for major supermarkets, retail chains, dairy producers and other customers, in New Zealand and China, under their private label brands.

Keytone NZ's products are exported globally, including to China, for sale in a variety of channels, including major supermarket chains, premium retail channels and online marketplaces.

Keytone NZ's customers and distribution channels include, New World, PAK'nSAVE, Countdown (Woolworths New Zealand subsidiary), Dairyworks New Zealand, Metro, Guangzhou Dept. & Friendship Store, HalsoKraft,, and



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