Yili shares underwritten 3.4 times by 53 leading financial institutions, marking largest private placement in the consumer sector in China’s A-share market

  • This is the question that is worth the trouble 10 billion RMB with the largest number of subscribers (53), the smallest original program discount (5.46%) and the highest subscription rate (3.4 times subscribed) since the release of from China new refinancing regulations.

BEIJING, December 14, 2021 / PRNewswire / – Enabled December 9, 2021, Yili Group released its non-public offering announcement, signifying the completion of the largest private placement in the consumer sector on from China Stock market A.

The head office of Inner Mongolia Yili Industrial Group Co., Ltd.

The announcement shows that the shares were ultimately awarded to 22 targets at a price of 37.89 RMB per share, with a total of 317,953,285 shares raising approximately 12,047 million RMB.

This private placement of Yili has attracted 53 leading institutional and individual investors from around the world to bid for its shares. The issue price represents a discount of 5.46% compared to the closing price on the date of the investigation, establishing a new low since the entry into force of the new regulations on refinancing.

Yili share capital offer recognizes its investment value

The small discount and the enthusiastic bidders showed the unanimous recognition of Yili’s investment value. On the one hand, the promising outlook for the dairy industry and Yili’s exceptional performance have boosted investor confidence. On the other hand, he demonstrated his confidence in Yili’s strategic objectives aimed at securing its strong development prospects in the future.

Data from Yili’s latest financial statements not only exceeded market expectations, but also demonstrated a whole new growth trend. In the first three quarters of 2021, the company achieved total operating revenues of 85,007 million RMB, up 15.23% over one year, and its net profit amounted to 7,967 million RMB, representing growth of 31.82% year-on-year.

As one of the top five dairy producers in the world, Yili continued to optimize its product structure with the aim of strengthening its competitiveness as an industry leader. The announcement says that the funds raised through this show will be mainly used to strengthen Yili’s layout and expand its production capabilities of high-value-added varieties of products, as well as for digitization operations. This will fully improve the profitability and operational efficiency of the company.

Create shareholder value

The rapid growth of Yili’s business scale and the accelerated pace of establishing a globalized presence have resulted in increased demand for the company’s working capital. The private placement can help Yili optimize its financial structure and improve its bottom line.

Yili has always paid high returns to its shareholders, which has also been an important factor in the active participation of investors in its private placement. Since its IPO, Yili has cumulatively distributed dividends 21 times, with cash dividends worth 30.4 billion RMB in total, according to the data.

At the 2021 Leadership Summit organized by Yili Group, Chairman and Chairman Pan Gang presented the company’s goal of a “new vision for value creation”, in which the creation of value for shareholders is l one of the key pillars.

SOURCE Yili Group


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Marianne R. Winn