South Australia-based Beston Global Foods Company (BGFC) will list on the ASX on Friday with an initial market capitalisation of just over $127 million.
BGFC chairman Roger Sexton said the company had completed successfully its initial public offering capital raising despite “significant head winds”.
These included the Greek financial crisis, the China stock market meltdown and negative sentiment about the Australian economy.
He said the BGFC offering had gained support from Asian institutional investors, as well as retail investors in Australia.
“The core objective of BGFC in taking healthy eating to the world’s growing communities has resonated strongly in Asia, with the result that around 50 per cent of the investors in the IPO are from offshore,” Sexton said in a statement this morning.
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The company this year purchased the former UDP dairy sites at Murray Bridge and Jervois in South Australia. The facilities have been rebranded as Beston Pure Foods and a product range will be relaunched in early September.
BGFC chief executive officer Sean Ebert said the UDP purchases were part of the company’s operating model, which favoured an integrated closed loop supply chain.
Under this model, the company owns the raw materials and takes them through production, marketing and distribution via company-owned subsidiaries in key global locations.
Ebert said that in line with this strategy, the company was in the process of relocating the Australian Provincial Cheese manufacturing plant from Victoria to Murray Bridge to expand production to meet export demand from Asia.
The company expects BGFC to begin trading on the ASX on Friday.
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