Dali Foods Raises $1.15 Billion in Hong Kong IPO
November 15 2015 - 9:00PM
Dow Jones News
Chinese private snack-and-beverage group Dali Foods Group
Company Ltd. raised US$1.15 billion in its Hong Kong initial public
offering, the largest offering this year for any Chinese privately
owned enterprise, according to people with knowledge of the
matter.
Dali Foods, partly owned by private-equity firm CDH Investments,
priced its IPO at 5.25 Hong Kong dollars (US$0.68) per share via
1.69 billion shares, near the lower end of a HK$5.00-HK$6.15 range,
after locking in US$305 million from three cornerstone
investors.
Cornerstone investors in Hong Kong commit funds to support an
IPO and agree to buy at the float price, but are tied to holding
the stock for a certain period, usually six months, after the
shares start trading. The participation of such investors can help
give other investors confidence to invest in an IPO.
The Fujian-based company's IPO is the biggest in the food and
beverage sector since WH Group Ltd.'s US$2.4 billion float in July
2014. Dalian Wanda Commercial Properties Co. Ltd. holds the record
among Chinese privately owned enterprises, with a US$4 billion IPO
in December last year.
CDH via its subsidiary CDH Delicacy bought a 3% stake in Dali
Foods for 1.11 billion yuan (US$1.34 billion) in April this year,
gaining a seat on the company's board.
Founded in 1989, Dali Foods' revenue for the first half of this
year amounted to 8.5 billion yuan, according to its filing to the
Hong Kong stock exchange.
The company is set to start trading on November 20.
Bank of America Merill Lynch and Morgan Stanley are the joint
sponsors, or banks responsible for the IPO.
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(END) Dow Jones Newswires
November 15, 2015 20:45 ET (01:45 GMT)
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