A unit of Shanghai-based Bright Dairy and Food Co is set to raise NZ$75 million (US$58.04 million) in an initial public offering in New Zealand.

After the completion of the IPO, Bright Dairy will still be the biggest shareholder of Synlait Milk Ltd with 38.5 percent to 40.7 percent stake, down from 51 percent it now holds, the Shanghai company said in a stock exchange filing yesterday.

Synlait, a maker of both adult and infant milk powder, has set an offer price range of NZ$2.05 to NZ$2.65 per share, giving it a market capitalization of NZ$305 million to NZ$372 million.

Pricing will close on July 19 and trading is expected to begin on July 23 on the NZX Main Board, Synlait said in a separate statement yesterday.

"We've had strong support from Bright Dairy as a cornerstone shareholder and an early customer for our infant formula and now we're ready to accelerate the development of our milk powder and nutritional products," Synlait managing director and co-founder John Penno said in the statement.

The proceeds will be used to repay debt and help fund construction of a facility for lactoferrin, a key ingredient in infant formula, as well as other production plants, according to its prospectus.

Bright Dairy invested NZ$82 million in Synlait in July 2010.