Hotpot chain Haidilao says unit files for HK listing, stock slips

Haidilao International Holding

14/07/2022 06:55

** Shares of China's hotpot chain Haidilao Internatiobal
Holding  6862.HK  slip 2.3% to HK$16.64, after two straight
sessions of gains
    ** Beijing-based company says its overseas restaurants
business arm, Super Hi International Holding, has filed an
application to the Hong Kong bourse seeking a listing
 urn:newsml:reuters.com:*:nP8N2YS06S
    ** Haidilao says the listing will unlock value of the
developing business of the spin-off unit, while providing a
fund-raising platform that benefit existing operations and
future expansion
    ** "As the scale of overseas operation is relatively small
and some investors might have a China-focus investment mandate, 
we  expect  short-term  share  price  volatility  for  its 
overseas operation post spin off, unless its growth strategy
attracts new investors," Jefferies says
    ** Daiwa says volatility in Haidilao's share price might
remain in the near term as further details of the proposed
spin-off are awaited
    ** Growth prospects of the two groups could diverge as
overseas markets have likely bottomed out on the lifting of
health and travel restrictions, while Mainland China's
visibility remains murky amid the dynamic zero-COVID strategy -
Daiwa
    ** Hang Seng consumer goods and services index  .HSCGSI 
climbs 0.6% and Hang Seng index  .HSI  edges up 0.1%

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))