Youran's IPO offering size totaled approximately $644m, giving Youran a total market value of $3.4bn upon listing. The offering size can be increased to approximately $741m with exercise of the overallotment option.
Youran's businesses cover the entire upstream dairy value chain, including raw milk products, feed for dairy farms, dairy breeding, and other ruminant farming products and solutions, and is today the largest producer of raw milk globally. Founded in 1984, Youran has nearly 40 years of experience in the dairy industry and related R&D, and is formerly a wholly-owned subsidiary of Yili, Asia's largest dairy manufacturer.
PAG has been an investor in Youran since its spinoff from Yili in 2015, and has invested about $700m in the company over time.
From 2018 to 2020, Youran has grown its herd size from around 127,000 dairy cows to more than 350,000 cows, and increased annual revenues from $919m to $2bn. Youran is a leader in organic and specialty raw milk, with its products exceeding quality standards set by the US, EU, Japan and China.
Youran CEO Zhang Xiaodong said, "This IPO is a testament to Youran's impressive growth over the past six years in partnership with Yili and PAG. We are looking forward to using the IPO as a ramp for the company's future growth, and to continue to be a world leader in dairy farming and dairy breeding. We thank our strategic shareholders Yili and PAG for their steadfast support."
PAG partners Suining Xiao, Kevin Xu, and David Qiu said, "We congratulate Youran on their Hong Kong listing and are very pleased with the track record of the company over the years we have worked with them. This IPO is the result of very hard work by Youran's management and we are excited to continue to be a strategic shareholder in Youran as a public company. We believe Youran will continue to be the #1 market leader in the upstream dairy space in China and be in the forefront of this industry's rapid development in China."
Yili chairman and CEO Pan Gang said, "We are very pleased with the continued development and growth of Youran Dairy, a strategic affiliate of Yili, and with PAG as an investment partner. We're looking forward to continuing Yili's path to be a global leader in dairy products, with Youran as a strategic platform for developing upstream dairy resources."