Nov 07, 2019 (China Knowledge) - China’s baby formula producer China Feihe Ltd. (6186) is believed to have raised HKD 6.7 bln (USD 856 mln) in its initial public offering (IPO) on the Hong Kong Stock Exchange (HKEx).
China Feihe’s shares were offered at between HKD 7.50 to HKD 10.00, at a market value of USD 8.5 bln to USD 11.4 bln. The company is believed to have sold a total of 893.3 mln shares at the bottom price range of HKD 7.50 per share.
This marks the second attempt of China Feihe in listing the company’s stocks on the HKEx. The company had previously attempted to IPO in May 2017, although it did not follow through with its plans.
The company reported a total revenue of RMB 10.4 bln (USD 1.49 bln) and net profit of RMB 2.24 bln last year.
Following the IPO, Feihe will utilize the funds raised to repay offshore obligations, invest in a new manufacturing facility, as well as look to make investments in other areas. The company will also enhance its product development and business expansion.
In 2018, the global baby nutrition industry was valued at USD 71.5 bln. The industry is expected to grow steadily in the next few years, and grow upwards to USD 95 bln by 2024.
China Feihe will commence trading on Nov 13.
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