Chinese hotpot chain Haidilao to press ahead with global expansion after positive US debut
- Haidilao operator Super Hi International plans to use 70 per cent of the US$53 million listing proceeds to strengthen the brand and expand the network globally
- Super Hi’s US debut could add momentum for Chinese firms weighing a listing abroad
Super Hi International Holding, the international operator of China’s popular hotpot chain Haidilao, is planning to boost its international footprint following a listing in the US that has been well-received.
The company’s American depositary shares, which represent 10 ordinary shares trading in Hong Kong, are up 7.4 per cent after three sessions in New York, versus a 3.5 per cent drop during the same period of an index tracking Chinese shares listed on the Nasdaq.
Some 70 per cent of net proceeds from the US$53 million offering will be tagged to strengthen the company’s brand and expand its network globally, according to the prospectus. The listing in the US gives Super Hi access to a deeper pool of investors, improve liquidity and makes it easier to raise funds abroad in the future.
“Leveraging the more active US stock market compared to Hong Kong helps achieve growth in its overseas business, with a focus on expanding Haidilao’s store network, brand value, and image positioning in overseas markets,” said Shen Meng, a director at Beijing-based Chanson & Co.
Super Hi began trading in the US as momentum increases for Chinese firms weighing a listing abroad. There has been optimism that Beijing will increase approvals for companies seeking US IPOs, after China’s regulator said last month that it would support overseas listings of tech firms, following two years marked by a drought of blockbuster deals from the sector.
