China Resources Beverage prices IPO at top end of range, valuing firm at US$4.4 billion
The IPO gives the water-bottling company a market capitalisation of about US$4.4 billion before its debut on Wednesday
The Shenzhen-based company will sell 347.8 million shares at HK$14.50 a share, according to the term sheet seen by the Post, after marketing the shares between HK$13.50 and HK$14.50. At HK$14.50 per share, the IPO values the entire company at about US$4.4 billion before its trading debut on Wednesday.
The IPO received an overwhelming response from retail investors. The Hong Kong tranche was more than 200 times oversubscribed, while the international book was multiple times oversubscribed, according to a banker involved in the deal. It will trigger a provision allowing retail investors to buy more shares at the expense of global funds.
CR Beverage has an option to sell an additional 52.2 million shares to fulfil excess demand. That could swell the IPO proceeds to as much as US$747 million.
UBS, BOC International, Citic and Merrill Lynch are the joint sponsors of the deal.
The IPO attracted nine cornerstone investors who were slated to buy US$310 million worth of shares, according to the term sheet. UBS Asset Management would take up about a third of the cornerstone block. Other investors include China Travel Service Holdings, Wildlife Willow, China Post Life Insurance and Oaktree Capital Management.
