Drink maker Eastroc eyes HK IPO as profit soars

Chinese energy drink maker Eastroc Beverage Group said it is considering a Hong Kong listing, as it revealed a 63 percent growth in net profit to 3.33 billion yuan (HK$3.57 billion) last year.

Bloomberg reported earlier that the Shanghai-listed firm could raise as much as US$1 billion (HK$7.8 billion) from the initial public offering in the city.

The proposed issuance of H-shares aims to further enhance the company’s capital strength and overall competitiveness, elevate its international brand image, meet the needs of its international business development, and advance its globalization strategy, Eastroc said in a filing on Friday. 

Revenue for the year jumped by 40.6 percent to 15.8 billion yuan from 2023, the Shenzhen-based company said in a separate filing. It proposed a dividend of 2.5 yuan per share.

Established in 1994, the company sells drinks including vitamin energy and electrolyte beverages, Chinese-style sugar-free teas, coffee, and coconut milk, according to its website.

Its shares soared more than 60 percent in the 12 months but dropped by over 7 percent since the beginning of this year with a market value of 126.4 billion yuan. 

The beverage maker had planned a sale of global depositary receipts in Zurich about two years ago, when Chinese firms were taking advantage of a scheme allowing them to list on certain European exchanges before Beijing moved to tighten requirements for GDRs.

STAFF REPORTER AND BLOOMBERG