wisepowder: Nongfu Spring Seeks to Raise $1 Billion in Hong Kong IPO

Nongfu Spring Seeks to Raise $1 Billion in Hong Kong IPO

Jan 18 2021 at 21:50

The Chinese water and beverage maker Nongfu Spring is planning a Hong Kong IPO and aiming to raise up to $1 billion.To get more news about Nongfu Spring, you can visit en.nongfuspring official website.

The company, which claims it’s a top-three player in the bottled tea and juice market will move towards the public listing despite its operations in the mainland markets taking a hit from the Covid-19, as Reuters reported today.

“During the COVID-19 outbreak, our sales of beverage products decreased compared to the same period in 2019,” Nongfu said in its preliminary prospectus.

The company added, “According to the information currently available, our revenue and net profit decreased in the three months ended March 31, 2020, compared with the three months ended March 31, 2019.” However, for the full year 2019, Nongfu generated 24 billion yuan in revenue, up 15% year-over-year on a profit of 4.95 billion yuan.

The sponsors are China Capital International Corp and Morgan Stanley with Freshfields Bruckhaus Deringer serving as the legal adviser on Nongfu’s IPO.

(Nasdaq: JD) reportedly seeking to raise $2 million in its IPO in Hong Kong. Despite the city relaxing its listing rules, there has been just $2.45 billion worth of IPOs in 2020 compared with $4.27 billion for the same time in 2019, according to data from Refinitiv. Mostly regarding follow-on deals and convertible bond transactions, there has been $12.81 billion worth of equity capital market activity in Hong Kong, the data showed.



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