Business
China Resources Beverage’s IPO Valued at US$4.4 Billion Amid Overwhelming Response from Investors
The initial public offering (IPO) of China Resources Beverage is priced at the highest end of the spectrum, bringing the company's value to around US$4.4 billion. This water-bottling company's market capitalisation stands at roughly US$4.4 billion ahead of its launch this Wednesday.
The business located in Shenzhen plans to offer 347.8 million shares at a price of HK$14.50 each, as per the terms outlined in the document reviewed by the Post. This comes after the shares were marketed in the price range of HK$13.50 to HK$14.50. With a per share price of HK$14.50, the company's total value before its initial public offering on Wednesday is estimated to be around US$4.4 billion.
The initial public offering garnered an impressive reaction from individual investors. The portion set aside for Hong Kong saw subscriptions exceeding its availability by over 200 times, while the international section also experienced significant oversubscription, as stated by a finance professional involved in the transaction. This will activate a clause that permits individual investors to purchase additional shares, which would otherwise have been acquired by worldwide funds.
CR Beverage holds the capability to offload an extra 52.2 million stocks to meet the surplus demand. This maneuver could potentially increase the IPO earnings up to a staggering US$747 million.
The deal is being jointly sponsored by UBS, BOC International, Citic, and Merrill Lynch.
The initial public offering drew in nine key investors who were scheduled to purchase shares valued at $310 million, based on the terms outlined. UBS Asset Management was set to acquire roughly one-third of the main investment block. Additional investors comprised of China Travel Service Holdings, Wildlife Willow, China Post Life Insurance, and Oaktree Capital Management.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.