Wilmar (SGX:F34) is in the midst of spinning off Yihai Kerry Arawana in the ChiNext of Shenzhen Stock Exchange. This could be one of the reasons that drove Wilmar’s share price up by 43% from the low of $2.90. Wilmar will sell about 10% of the enlarged share capital, or 542,159,154 shares, in Yihai Kerry Arawana to the public. Unfortunately foreign investors are unable to buy this IPO because ChiNext stocks are currently excluded from the Shenzhen-Hong Kong stock connect. Wilmar shareholders would not be receiving shares in Yihai Kerry Arawana as it remains a subsidiary of Wilmar (89.99% ownership). Nonetheless, Wilmar shareholders have already enjoyed some price gains and could continue to see more upside after the spin-off. The purpose of this spin-off is to fund Yihai Kerry Arawana’s expansion capital expenditure. The IPO price has yet to be set but Yihai Kerry Arawana has indicated to use proceeds of ¥13.87bn. This...