China's largest condiment maker Foshan Haitian Flavouring and Food kicked off bookbuilding to raise up to nearly HK$9.6 billion in Hong Kong, joining a series of mainland-listed companies that seek a dual listing in the city.
The Guangdong-based firm offers over 263 million new shares, of which the retail tranche accounts for 6 percent.
Haitian, which went public on Shanghai Stock Exchange in 2014, seeks to set its offer price between HK$35 and HK$36.3 per share, offering a discount of up to 23 percent compared with Tuesday's close of 41.72 yuan (HK$45.55)
The minimum investment costs HK$3,667 per board lot of 100 shares.
Haitian's Shanghai-traded shares lost over 7 percent so far this year to HK$41.75 as of 10.32 am in Hong Kong.
The condiment king expects to raise no more than HK$9.56 billion, with net proceeds of HK$9.27 billion based on the median prospectus price, which will be utilized for capacity expansion, supply chain digitization upgrade, product development, and expansion of sales channels.
Haitian's revenue for the first quarter of this year rose 8 percent year-on-year to 8.32 billion yuan, and net profit increased about 15 percent to 2.21 billion yuan.
The bookbuilding will close on June 16 and Haitian is scheduled to debut in Hong Kong on June 19.
STAFF REPORTER
