695 times oversubscribed! HAITIAN FLAV's Hong Kong stock IPO is highly sought after

This article is sourced from: Securities Times Following the strong interest shown by institutional investors during the international offering, retail investors also actively responded during the Hong Kong offering phase, jointly sparking a subscription frenzy. It is understood that in the Hong Kong public offering phase that ended on the 16th, the margin subscription amount reached nearly HKD 400 billion, oversubscribing approximately 695 times compared to the initial fundraising amount of HKD 573 million. Among them, brokers such as Futu, Huatai, Tiger Brokers, and Yao Cai lent HKD 217.4 billion, HKD 93 billion, HKD 31.3 billion, and HKD 16.8 billion in margin funds, respectively. Given the enthusiastic market response, HAITIAN plans to fully exercise its over-allotment option, increasing the issuance of shares by 6%, and intends to set the upper limit of the offering price at HKD 36.3, with the total fundraising amount expected to rise to approximately HKD 10.15 billion. It is worth noting that its H-share offering price is about 19% lower than the closing price of A-shares the previous day. In the previously concluded international offering, HAITIAN also achieved significant success, attracting a number of strong cornerstone investors. Eight top institutions and sovereign wealth funds, including Hillhouse Capital, Singapore Government Investment Corporation, UBS Asset Management, Royal Bank of Canada, CITIC Industrial Fund, and Sequoia, participated in the subscription. These cornerstone investors collectively subscribed for no more than 129 million H-shares, accounting for nearly 50% of the total shares offered, with a subscription amount of nearly HKD 4.7 billion. This scale makes HAITIAN the third-largest Hong Kong IPO project by cornerstone investor subscription scale since 2023, following CATL and Midea Group's Hong Kong IPOs. According to the plan, HAITIAN will officially list on the Hong Kong Stock Exchange on June 19. "As a leading enterprise in the condiment industry, HAITIAN's ability to attract numerous international institutions reflects global investors' optimism about the Chinese consumer market and their high recognition of the core competitiveness of industry leaders," said an investment manager from a Hong Kong investment institution in an interview with reporters. In fact, the Hong Kong stock market has continued to show strong attractiveness this year, with several phenomenal IPO projects successfully landing on the Hong Kong Stock Exchange, and a steady influx of incremental funds driving high enthusiasm in the new share subscription market. According to data from the Hong Kong Stock Exchange, in the first five months of this year, a total of 29 companies completed listings in the Hong Kong stock market, with cumulative IPO fundraising amounting to HKD 77.7 billion, making it stand out in the global capital market and ranking first in the world in terms of fundraising. "There will still be quite a number of high-quality enterprises coming to Hong Kong for listing in the second half of the year, and the new share subscription feast is expected to continue, with consumption and technology remaining the focus of investors. However, investors should also be aware of risks when subscribing for new shares, as some overly packaged companies have a considerable probability of breaking after listing," the aforementioned investment manager stated