Synlait Milk is aiming to raise $75 million through an initial public offering on the New Zealand Stock Exchange.

The shareholders of the dairy company will offer 19 million shares of Synlait Milk as part of the IPO but Bright Dairy is not likely to participate in the capital offering. The company has said that the offering would be with an indicative share price range of between $2.05 and $2.65 and this would give a market capitalisation of $305 million to $372 million dollars to the dairy giant.

Synlait managing director John Penno has said that the capital raised will be used for repaying debt and funding tis growth including the development of its Dunsandel site. Apart from new capital, the company will also offer include a secondary sell-down that will raise $45 million depending upon the book building process.

Bright Dairy, which is listed on the Shanghai stock exchange, will not participate in the offering but its holding is likely to be reduced from the current 51 per cent to about 40 per cent depending upon the market price of the shares. Synlait Milk is currently 51 per cent owned by China's Bright Dairy & Food Co and 49 per cent by Synlait Ltd.