China Resources Beverage files for $649 mln Hong Kong IPO (updated)

Sichuan Baicha Baidao Industrial Co

14/10/2024 23:31

(Updates with further details and background in paragraphs 4-8)
       Oct 15 (Reuters) - Drinks maker China Resources Beverage
on Tuesday applied for a HK$5.04 billion ($649.25 million) Hong
Kong initial public offering (IPO), an exchange filing showed,
making it the city's largest new share sale this year.
    The company, which owns the C'estbon branded purified
drinking products in China, is offering 347.8 million shares at
a price range of HK$13.50 to HK$14.50 apiece at the IPO. 
    The flotation comes amid heightened volatility in Hong
Kong's equity market following the Chinese government's massive
stimulus package aimed at reviving the mainland Chinese economy.
    The IPO is a signal for the company's aggressive market
expansion ambitions amid rising competition with bigger rival
Nongfu Spring  9633.HK , which raised about $1.1 billion in a
2020 IPO.
        China Resources Beverage's Hong Kong IPO is set to be
larger than tea drinks firm Sichuan Baicha Baidao Industrial's
 2555.HK  $330 million raising in April.  
        The city's largest floatation in more than three years
came in September, where Chinese electrical appliance maker
Midea Group  000333.SZ  raised nearly $4 billion. 
        The beverage company is controlled by state-owned
conglomerate China Resources Holdings. 
  
        BofA Securities, Citic Securities, Bank of China
International and UBS are the IPO's sponsors. 
  
     
  

($1 = 7.7628 Hong Kong dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Shreya
Biswas)
 ((Rishav.Chatterjee@thomsonreuters.com;))