ZJLD Group seeks up to $812 million in Hong Kong's largest IPO in 2023 (updated)

CALB

17/04/2023 24:55

(Adds details from the IPO)
    By Scott Murdoch
       April 17 (Reuters) - Chinese liquor company ZJLD Group
is looking to raise up to HK$6.37 billion ($811.5 million) in a
Hong Kong initial public offering (IPO), the largest in the
financial centre this year, according to exchange filings on
Monday. 
    The company, backed by U.S. private equity giant KKR & Co
Inc  KKR.N , is offering about 490.7 million shares in a price
range of $HK10.78 to HK$12.98 each. That would see it raise
between $674 million and $811.5 million, the filings show.
     At the top of the range, ZJLD would be valued at $5.4
billion. The final price will be set on Thursday, with shares
due to start trading on April 27.
        There is also a so-called "greenshoe" option to sell
another 73 million shares that could raise an extra $122
million, according to the filings.
    ZJLD makes baiju, a colourless distilled spirit popular
across China. 
    KKR owns a 16.2% stake in the company, which would fall to
13.8% after the IPO, Hong Kong's largest since Chinese lithium
battery maker CALB Group Co  3931.HK  raised $1.3 billion in
October.
        Hong Kong traditionally has been a major IPO centre in
Asia but new shares sales have fallen sharply as global
financial markets remain volatile and Chinese companies awaited
new rules governing offshore listings that are now in place.
    In the first quarter of this year, just $508.3 million was
raised in new share sales in Hong Kong, according to Refinitiv
data. 
        Dealmakers are hopeful the city's IPO volumes will
improve in the second half of 2023 and into next year as markets
stabilise and major firms like Alibaba Group  9988.HK   and
JD.com  9618.HK  plan a number of spin-off listings.
    ($1 = 7.8493 Hong Kong dollars)

 (Reporting by Scott Murdoch in Sydney, additional reporting
Harshita Swaminathan; Editing by Tom Hogue and Jamie Freed)
 ((Harshita.Swaminathan@thomsonreuters.com;))