Nongfu Spring Opens IPO Subscription to Retail Investors

Nongfu Spring Opens IPO Subscription to Retail Investors



Chinese bottled water and beverage company Nongfu Spring started its IPO subscription application to the general public today, with a minimum purchase of HK$4,343 per 200 shares. To get more news about Nongfuspring, you can visit en.nongfuspring official website.

According to local financial media HKET, shares avail­able for re­tail in­vestors could be heavily over­sub­scribed. The public application will last for a week and the company is expected to be listed on the Stock Exchange of Hong Kong (HKEX) on 8 Sep 2020.

At the top of the price range of HK$21.5 per share, Nongfu Spring's shares will have a market value of HK$240.547 billion if the offering is completed and the over-allotment is not exercised.

Earlier reports showed that Nongfu Spring is aiming to raise as much as $1 billion and plans to use the process for the expansion of production capacity, more brand building, raising investment in infrastructures, and for exploring overseas market opportunities. China Capital International Corp (CICC) and Morgan Stanley are the sponsors on the deal.

Established in 1995, Hangzhou-based company ranks as a top-three player in the Chinese market for tea, functional, and juice beverages. Nongfu Spring ranked first in the packaged drinking water market in China in terms of market share for eight consecutive years from 2012 to 2019, according to a commissioned Frost & Sullivan Report.

Despite political uncertainty and domestic tensions over the new national security law, Hong Kong is still the go-to destination for Chinese companies seeking to list publicly.