May 18, 2022
  • May 18, 2022

Wilmar’s Indian joint venture moves forward with planned IPO

By on January 20, 2022 0

SINGAPORE (THE BUSINESS TIMES) – Wilmar International, a publicly traded agribusiness company, has advanced in the planned listing of its Adani Wilmar joint venture, with a preliminary prospectus filed in India this week.

The proposed initial public offering (IPO) will involve the issuance of up to 36 billion rupees (S$651.5 million) in new shares, with a face value of one rupee each, Wilmar said on Thursday. January 20, one day after the prospectus. has been filed with the Gujarat Registrar of Companies.

Adani Wilmar’s draft prospectus last year said it could raise up to 45 billion rupees in the listing – with 19 billion rupees earmarked for capital expenditure, 11.7 billion rupees for payment loans and 5 billion rupees for strategic acquisitions.

Wilmar has now stated in his latest update that the price range for the IPO has not yet been decided by Adani Wilmar and will be announced in Indian newspapers at least two business days before the issue opens.

The IPO will open for public subscription on January 27 and will close on January 31.

Adani Wilmar – a 50-50 joint venture in fast-moving consumer goods between Wilmar and India’s Adani Group – plans to use proceeds from the IPO for capital spending, debt repayment, acquisitions and investments, as well as for general corporate purposes, Wilmar said.

There will be no secondary offering for the IPO, which is to take place on the Bombay Stock Exchange and the National Stock Exchange of India.

But Wilmar told shareholders that the planned listing still depends on factors such as the level of investor interest and prevailing market conditions, with no assurances of proceeding.

Adani Wilmar’s potential slate had been mooted in the media since March 2021, with the red herring draft prospectus filed in August 2021.

Wilmar registered its Chinese unit Yihai Kerry Arawana in Shenzhen in October 2020.

Shares of Wilmar closed up five cents, or 1.2%, at $4.34 on Thursday.