Mid-Canterbury milk processor Synlait's share price leapt more than 20% on debut on the NZX yesterday, rising from the $2.20 issue price to trade at $2.80.
Synlait began the day with a market capitalisation at $322 million, ending up at more than $400 million.
With both offers heavily scaled back, it appears institutions and investors were topping up their respective stakes yesterday, with huge trading volumes.
The oversubscribed IPO in total raised $114 million; $75 million of new capital to be used to repay debt and fund growth initiatives, plus a secondary $38.7 million offer of 17.6 million existing shares originating from participating Synlait shareholders.
Craigs Investment Partners broker Peter McIntyre said the IPO was ''very successful'', with Synlait setting itself up for more capital-raising ''in the future''.
''They've been smart; not overpricing the issue and not taking more from investors,'' Mr McIntyre said of the scaling-back.
In paying debt and looking to expand operations by up to 50%, Synlait was positioning itself for further investment, and should remain attractive to investors in the future, Mr McIntyre said.
Netherlands-based Royal Friesland Campina, one of the world's largest co-ops, grabbed a surprise 7.5% stake in Synlait Milk during the initial public (IPO) offering, which raised $75 million.
Majority shareholder Bright Dairy, of China, did not participate in the offer, which meant its 51% stake declined to 39.1%, but it remains the majority shareholder, while Mitsui of Japan's stake stood at 8.4%.
Synlait chairman Graeme Milne said the IPO had been an ''outstanding success''.
Alongside the Friesland Campina Investments Holding B. V. stake, Mr Milne said 2296 new shareholders were aboard.
The IPO attracted ''strong support'' from institutions in New Zealand, Australia, Singapore and Hong Kong, employees and suppliers of Synlait Milk and New Zealand retail investors.
With 21% of the country's grasslands now used for dairying, New Zealand's milk production has grown just under 50% during the past decade, with 1.7 billion kilograms of milk solids produced in 2012.
Synlait gets milk from about 155 Canterbury farms, making a range of ingredients, infant formula and nutritional products.
Synlait's growth initiatives include increasing the existing plant capacity by 50% and boosting production of high-value ingredients and infant formula.
Synlait was launched in 2005. It was 49%-owned by Synlait and 51% by Chinese food giant Bright Dairy and Food Co Ltd.
