Wilmar's YKA IPO could kick off in Q4: analyst

It already received a go-ahead from the Chinese regulator.

The upcoming initial public offering (IPO) of Wilmar International’s 99.99% owned subsidiary Yihai Kerry Arawana Holdings (YKA) in the Shenzhen Stock Exchange could take place in Q4 if approved by the regulator, according to DBS Equity Research.

This comes after YKA has received a go-ahead from China Securities Regulatory Commission (CSRC). The proceeds of the IPO may be largely utilised in the China market. 

The firm’s net profit in Q1 is at $162.7m (US$120m), which was in line with DBS’ forecast. It is said to represent an annualised net profit of $651m (US$480m) as compared to its oilseeds and grains estimate of $676.7m (US$499m) in 2019.

YKA contributes 60% of Wilmar’s core net profit in FY18.