China’s hotpot chain Haidilao seeks USD 960 mln IPO in Hong Kong
Sep 11, 2018 (China Knowledge) - Haidilao International Holding Ltd, a Chinese hotpot chain with international operations, plans to price its initial public offering (IPO) on 18 Sept. The company will be offering 424.5 mln shares at HKD 14.8 dollars to HKD 17.8 dollars apiece in its Hong Kong. It will be taking in orders through 17 Sept with trading to begin on 26 Sept.
Haidilao’s IPO has attracted five key cornerstone investors, agreeing to purchase USD 375 mln of stocks. Hillhouse and Greenwoods Asset Management have each agreed to subscribe USD 90 million of shares, while Morgan Stanley and Snow Lake Capital will be committing USD 80 million each. On the other hand, Ward Ferry will invest USD 35 million in the company.
CMB International and Goldman Sachs are joint sponsors of the listing. The hotpot chain could raise as much as USD 801 million to USD 963 million. Funds raised from the IPO will be used for general corporate purposes, repay debts, finance the company’s expansion plan, development and implementation of new technology to enhance customer experience.
The company is ranked first in the Chinese cuisine restaurant market in country, and globally in terms of its 2017 revenue, according to the prospectus. Haidilao has been expanding rapidly, with 98 new restaurants in 2017, and 320 restaurants operating internationally. Revenue of the company has increased by 36% in 2017, up from RMB 7.8 bln in 2016. Profits has also increased by 22% compare to the same period, at RMB 1.1 bln in 2017.
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