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Synlait Milk starts trading on ASX

AAP logoAAP 25/11/2016 Trevor Chappell

New Zealand dairy processor Synlait Milk has started trading on the Australian share market, with its shares hitting the board at $3.18.

Synlait, which makes nutritional products and specialty ingredients for other companies, including infant formula for A2 Milk, is already listed on the New Zealand share market.

"Being dual-listed on the NZX and ASX increases access for institutional investors in Australia and opens up the company to Australian retail investors, too," Synlait chief executive John Penno said on Friday.

Seventy-two per cent of Synlait's institutional shareholders are based in Australia.

Synlait said that the dual listing would increase liquidity and broaden the shareholder base.

Synlait did not raise any capital as part of the ASX listing process and is listed as a foreign exempt issuer.

The company's stock was at $NZ3.20 on the New Zealand stock exchange on Friday afternoon, while the Australian listing remained unchanged at $3.18 in the first hour after its 1200 AEDT listing.

Synlait is located on New Zealand's South Island, with more than 430 employees.

Synlait's Dunsandel processing site in Canterbury received 658 million litres of milk in fiscal 2016.

In the year to July 31, Synlait booked a net profit of $NZ34.4 million.

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