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China Resources Beverage Secures Green Light for Hong Kong IPO – What You Need to Know!

2024-09-26

Author: Ming

Overview

On September 26, China Resources Beverage Holdings, renowned for its popular mineral water brand C'estbon, received official approval to proceed with its initial public offering (IPO) in Hong Kong. This marks a significant milestone for the company as it positions itself for potentially greater market presence and growth.

IPO Details

While specifics on the targeted amount to be raised through the IPO were not disclosed, documents presented to the Hong Kong Stock Exchange revealed that prominent firms BofA Securities, Bank of China International, Citic Securities, and UBS will serve as the joint sponsors for this pivotal venture. Reports have circulated, including insights from the South China Morning Post, suggesting that the IPO could raise around USD 1 billion, potentially making it the largest IPO on the Hong Kong Exchange (HKEX) this year.

Company Background

China Resources Beverage holds the position of being China’s second-largest packaged drinking water company and the leading producer of purified drinking water by sales, as reported by China Insights Consultancy. Its financial performance shows robust growth; in the first four months of the year alone, the company reported a net profit of CNY 461 million (approximately USD 65.7 million) and revenue nearing CNY 4.2 billion (around USD 598.3 million), with an impressive 90% of that revenue generated from its drinking water products.

Operational Strength

By April 30, the company had established a solid operational foundation with 13 self-owned plants featuring 61 production lines, alongside partnerships that allowed 31 other partners to operate an additional 70 production lines across China.

Parent Company

Under the umbrella of China Resources Holdings—a state-owned conglomerate headquartered in Hong Kong—China Resources Beverage taps into a powerful network, with eight of its affiliates having successfully gone public on the HKEX, while nine others listed on the Chinese mainland markets.

Looking Ahead

With its IPO approval, all eyes are on China Resources Beverage as industry experts await the details of its fundraising strategies and future expansion plans. This could signal a transformative time for the beverage market in China, promising to enhance competition and elevate product offerings in the sector. Stay tuned as this story unfolds!