Post by : Minna

Photo: Reuters

Foshan Haitian Flavouring and Food, a Chinese condiment maker, had a strong debut on the Hong Kong Stock Exchange, raising HK$10.1 billion (US$1.3 billion). This listing became the second-largest on the exchange this year, confirming Hong Kong as a leading place for global fundraising.

The company’s shares began trading on Thursday at HK$37.50, a 3.3% rise from their offer price of HK$36.30, which was the top of their expected range. This occurred even though the Hang Seng Index fell by 0.4%. Foshan Haitian’s shares traded at a 12% discount compared to its onshore stock. Foshan Haitian sold 279 million shares, including an additional 15.8 million shares to meet high demand.

Retail investors were especially keen on the shares, with their demand oversubscribed by about 917 times. As a result, the company increased the share allocation for retail investors to 19.8%, from the initial 6%. Global funds received the remaining 80.2%. The company’s chairwoman, Cheng Xue, expressed confidence in the listing’s success, saying they would continue to reward investors and contribute to Hong Kong’s prosperity.

She added that the company would focus on expanding in China and its long-term global strategy. Haitian, China’s largest listed condiment producer, plans to use the funds raised to increase production capacity, improve its supply chain, boost product development, and expand its sales network. The company is based in Foshan, Guangdong province, and is well known for products like soy sauce and oyster sauce.

The listing comes amid a rise in companies seeking to list both in mainland China and Hong Kong. These dual listings are becoming more common as favorable government policies and improved listing processes have made Hong Kong an attractive place to raise funds. Other recent large IPOs in Hong Kong, such as those by Contemporary Amperex Technology and Jiangsu Hengrui Pharmaceuticals, have further cemented the city’s position as a top IPO market.

In the first half of the year, Hong Kong raised US$14 billion from IPOs, demonstrating the strength of its capital markets.

Foshan Haitian