China Resources Beverage Soars in Hong Kong Trading Debut – A New Chapter in IPO Momentum

Shares of China Resources Beverage witness an uptick on its first trading day in Hong Kong as initial public offerings (IPOs) gain traction. Trading as code 2460, CR Beverage wrapped up the day with a 14.6% increase, closing at HK$16.62, compared to its IPO price of HK$14.50.

CR Beverage accumulated a total of HK$5.04 billion (US$650 million) after offloading its stocks to external investors at the maximum advertised price. The initial public offering (IPO) drew bids that surpassed the number of shares on offer by an astonishing 234 times. This overwhelming response could potentially motivate CR Beverage to consider an option to offload an additional 52.2 million shares at an identical price, which could boost the earnings to US$747 million.

The initial premium rates value CR Beverage at HK$39.02 billion, as per the information from the stock market.

"Zhang expressed his deep appreciation towards the government and related divisions across all tiers of the group for their continuous support and help provided to China Resources Beverage. He also acknowledged the significant backing from the Hong Kong stock exchange and other intermediary firms during the company's IPO procedure," he stated prior to the start of trading.

The Initial Public Offering drew the interest of nine key investors who were expected to purchase shares valued at US$310 million, as per the term sheet. UBS Asset Management was set to acquire approximately one third of this pivotal block.