China Huishan Dairy Co., which produces milk from cows imported from Australia, has received approval from the Hong Kong Stock Exchange for an initial public offering (IPO) of up to US$1 billion. The company is expected to begin taking orders from September 10th, to price the deal on September 19th, and list in Hong Kong on September 26th. This would be Hong Kong’s third billion-dollar IPO this year. Huishan began importing cows from Australia after the domestic melamine contamination scare in 2008, but now there is suspicion of even foreign dairy products as well after the recent Fonterra botulism contamination scare and elevated levels of nitrates being found in Westland Milk Products milk powder. Huishan will not only have to convince investors of its reliability but of its value, as Hong Kong has fallen to 6th place as a venue for new listings after being the top of the market in 2011.
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