High expectations for Emmi shares
The leading Swiss dairy firm, Emmi, has begun floating its shares on the Swiss stock exchange on Monday at SFr100 ($88) – the top end of its indicated range.
It hopes to raise about SFr100 million with the initial public offering.
The company said in a statement on Sunday that its offering of up to one million new shares at a price range of SFr90-100 were ten times oversubscribed.
Emmi said it would make its debut on the bourse with a market capitalisation of about SFr430 million.
The dairy company has diversified in recent years into convenience products such as Caffe Latte and a range of yoghurts from its more traditional fare of milk and cheese.
The company has said it will use the funds mainly for acquisitions to help strengthen its distribution network in Europe.
Growth
It is targeting growth mainly in Germany, Austria, Italy and North America.
The company is soon expected to reach an annual turnover of SFr2 billion, a quarter of which is achieved through exports.
Up to 25 per cent of Emmi’s enlarged share capital will be in free float after the public offering, while the dairy cooperative, the Central Swiss Milk producers, will retain a majority of shares.
swissinfo with agencies
Key facts
Emmi:
Turnover 1993: SFr500 million ($396 million).
Turnover 2005 (estimated): SFr1.95 billion.
Employees: 2,600.
Suppliers: About 90,000 cows from 5,450 dairy farmers.
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