Nongfu Spring founder makes $4m on IFBH investment just two days in

Chinese billionaire Zhong Shanshan, founder of Nongfu Spring (9633), made a sizable profit from his investment in Thai coconut water company IFBH (6603) as its shares rose on their second day of trading.

Private equity fund Daohe Chengguang received 846,800 shares in IFBH’s international placement. Zhong, a multiple-time contender for China’s richest person, holds more than 30 percent equity in the fund.

IFBH, parent company of coconut water drink brands IF and Innococo, climbed nearly 14 percent on Wednesday. Based on an initial public offering ceiling price of HK$27.80 and the company's latest share price of around HK$44.50, Daohe Chengguang has gained over HK$14 million in paper profit – earning Zhong at least HK$4 million from his investment.

Just days ago, an annual wealth ranking compiled by a magazine backed by state-owned Securities Times had Zhong losing his spot as China’s richest person, slipping to second place with a net worth of 362.4 billion yuan (HK$330.8 billion) after Nongfu Spring’s stock price fell. He had been crowned China’s richest person for four consecutive years.

IFBH's lising in Hong Kong drew strong demand, with 236,000 retail investors applying and around 72,000 shares allotted. The international placement was 21.93 times oversubscribed against the initial issuance amount of HK$1.04 billion.

The company secured commitments totaling US$39.5 million (HK$308.1 million) from 11 cornerstone investors, including UBS Asset Management Singapore, Xuanlong Asset Management, Enreal China Master Fund, Forreal China Value Fund, HCEP Master Fund, Southern Asset Management, GF International, Cathay Capital, ICBC Wealth Management, hedge fund Jain Global, Jane Street, and Mega Prime.

STAFF REPORTER