Chinese baijiu distiller ZJLD eyes biggest Hong Kong IPO this year as share sale set to raise up to US$811 million
- ZJLD Group on Monday started selling up to 490.7 million shares at a price range of HK$10.78 to HK$12.98
- The IPO prices ZJLD at a higher price-earning multiple than bigger onshore-listed rival distillers
Chinese baijiu distiller ZJLD Group plans to raise as much as HK$6.37 billion (US$811.5 million) in an initial public offering (IPO) that would be the biggest in Hong Kong this year and would give international investors additional access to a growing market amid China’s consumption recovery.
“We are positive on the baijiu sector throughout the year, and key to the argument is consumption that’s driven by the recovery in confidence,” said Shen Hao, an analyst at Huachuang Securities. “We’ve already seen the faster-than-expected pace of reducing inventories in the industry through the Lunar New Year holiday.”
ZJLD said it will allocate 90 per cent of the offering to international investors, with the remainder reserved for Hong Kong traders, the statement said. Trading is expected to commerce on April 27. Goldman Sachs and China Securities International are the joint sponsors of the stock sale.