Dairy giant Fonterra’s consumer IPO could raise $1b to $2b: sources

Fonterra’s bankers plan to present to Sydney fund managers about the ASX listing of Mainland Group. The consumer business, part of New Zealand cooperative Fonterra, could be valued up to $4 billion. The potential IPO might raise between $1.5 billion and $2 billion.

The ASX listing is part of a wider strategy as fund managers evaluate Fonterra's growth profile and market conditions. Early expectations indicate the IPO could reach $1 billion, given it isn’t a high-growth name compared to other major companies.

Fonterra is contemplating a dual-track process alongside an auction, a strategy previously successful with other firms. The company has been prepared for divestment since past years, suggesting a proactive approach towards restructuring. The valuation and fundraising size will heavily depend on bookbuild outcomes and market response in the coming period.

Key discussions anticipate for future meetings with Mainland's CEO Rene Dedoncker, hoping to finalize supportive investor sentiments.