ZJLD Group Inc., a Chinese liquor company, is planning to start taking investor orders as early as next week for what could be this year’s biggest initial public offering in Hong Kong, according to people familiar with the matter.
(Bloomberg) — ZJLD Group Inc., a Chinese liquor company, is planning to start taking investor orders as early as next week for what could be this year’s biggest initial public offering in Hong Kong, according to people familiar with the matter.
The company is looking to raise $800 million to $900 million in the first-time share sale, said the people, asking not to be identified as the information is private. Deliberations are ongoing and details of the offering such as the fundraising amount and timing could still change, the people said.
ZJLD has been working with advisers since last year on its Hong Kong listing, Bloomberg News reported in November. At that time, people familiar with the matter said the offering may raise $300 million to $400 million. The company first filed for the IPO in January and submitted post-hearing documents last month, indicating the city’s stock exchange has given its approval. Goldman Sachs Group Inc. and China Securities International are the sponsors, its prospectus shows.
A representative for ZJLD didn’t immediately respond to requests for comment.
ZJLD’s IPO could boost Hong Kong’s tepid IPO market, which has only seen about $860 million raised so far this year, according to data compiled by Bloomberg. At $900 million, the firm’s first-time share sale would be the largest in the Asian financial hub since EV batter maker CALB Co.’s $1.3 billion listing in October.
A debut would make ZJLD the first Chinese maker of the white spirit known as baijiu to list outside the mainland. Such liquor brands have found favor with investors due to their high margins and the resilience of their sales amid economic turmoil, though they have sometimes been targeted in President Xi Jinping’s anti-corruption campaigns.
ZJLD was founded in 1975 as a state-backed project in Guizhou province, according to its prospectus, in a town only about a two hour drive away from the birthplace of Kweichow Moutai Co.’s famed brand. Its flagship brand “Zhen Jiu” means “treasure wine” in Chinese. Guizhou is home to some of the best known liquor brands and sources water from nearby mountains.
White liquor, distilled from rice, remains a fixture on Chinese dining tables, though western style red wines are gaining more and more traction among younger generations.
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