Bega has officially announced the launch of its initial public offering (IPO).

Australian cheese manufacturer Bega Cheese has announced the dates of its IPO, with trading in the company’s shares to start on 29 August.

In its IPO prospectus, released yesterday (18 July), Bega said the IPO will open on 16 July and close on 16 August.

Bega plans to raise A$35m (US$37.3m) through selling a 15% stake in the company. It will offer 18.3m shares at A$2.00 per share, valuing the company at A$254m.

Bega intends to use the proceeds from the IPO to reduce existing financing facilities as well as acquiring the 30% of Victorian dairy products business TMI that it does not already own.

Bega acquired a 70% controlling interest in TMI during 2007. The two sides have signed an agreement to be executed following the IPO and Bega will allow TMI shareholders to convert their shares to its stock. However, certain details of the merger, including the number of shares to be issued in exchange for TMI shares, are yet to be finalised.

For the 2010 financial year, Bega’s EBITDA reached A$54.8m, up on the $34.6m reported in 2009. Revenue also rose, reaching $834.2m in 2010 against $803.6m in 2009.

The company is forecasting EBITDA to reach $53.4m and revenue to reach $942.8m in the 2011 financial year.

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