BRIGHT Dairy and Food Co, a Shanghai-based dairy company, said its unit Synlait Milk Ltd plans an initial public offering in New Zealand.

Bright Dairy said in July 2010 that it would pay NZ$82 million (US$68 million) for 51 percent of milk processor Synlait. Bright Dairy did not specify in yesterday's statement to the Shanghai Stock Exchange the amount Synlait was looking to raise in the IPO.

Chinese dairy firms have been seeking acquisitions to improve the quality of their supply chain amid safety concerns. Food-safety scandals in China ranging from toxic melamine in milk powder to kitchen waste reprocessed into cooking oil and rat meat being sold as mutton have driven consumers to buy products overseas.