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

  • That’s the question worth asking 10 billion RMB with the highest number of subscribers (53), the smallest original issue discount (5.46%) and the highest subscription rate (3.4 times subscribed) since the release of China new regulations on refinancing.

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

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

The announcement shows that shares were ultimately awarded to 22 targets at a price of RMB37.89 per share, with a total of 317,953,285 shares generating approximately 12,047 million RMB.

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

Tender for Yili shares recognizes its investment value

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

The data contained in Yili’s latest financial statements not only exceeded market expectations, but also demonstrated a whole new growth trend. During the first three quarters of 2021, the company achieved total operating revenues of 85,007 million RMB, up 15.23% year on year, and its net profit amounted to 7,967 million RMB, an annual growth of 31.82%.

As one of the top five dairy producers in the world, Yili has continued to optimize its product structure in an effort to strengthen its competitiveness as an industry leader. The announcement indicates 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 digitize operations. This will fully improve the company’s profitability and operational efficiency.

Create value for shareholders

Yili’s rapid growth in business scale and accelerating pace of establishing a globalized presence has led to an increase in the company’s demand for working capital. The private placement can help Yili optimize its financial structure and improve the bottom line.

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

At the 2021 Leadership Summit hosted by Yili Group, Chairman and Chairman Pan Gang introduced the company’s goal of a “new vision for value creation”, in which the creation of shareholder value is the main objective. one of the key pillars.

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SOURCE Yili Group

Marianne R. Winn