Shares of China Resources Beverage (Holdings) advanced in their trading debut in Hong Kong, as the momentum of initial public offerings (IPO) gather pace in one of the busiest weeks this year for the local exchange, which may raise up to US$1.3 billion.
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Trading under the code 2460, CR Beverage jumped 13.8 per cent to change hands at HK$16.50, from its IPO price of HK$14.50, when Wang Xiangming, the chairman of the company’s parent, struck the ceremonial gong to mark the debut.
The Shenzhen-based company raised HK$5.04 billion (US$650 million) after offering its stock at the top end of an expected price range. The stock attracted bids that exceeded the available shares by 234 times, an oversubscription that may encourage CR Beverage to exercise an option to offer another 52.2 million shares. The so-called greenshoe option may swell the IPO proceeds to as much as US$747 million.
The IPO attracted nine cornerstone investors who were slated to buy US$310 million worth of shares, according to the term sheet. UBS Asset Management would take up about a third of the cornerstone block.
Other investors include China Travel Service Holdings, Wildlife Willow, China Post Life Insurance and Oaktree Capital Management.
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Nearly a third of the fundraising will go toward strategic expansion, production and supply chain optimisation, according to the company. The rest will go toward research and development, digitalisation, mergers and acquisitions and other corporate purposes, it said.