Dali Foods Group Co. Ltd., a Chinese snack and beverage producer, raised US$1.15 billion from an initial public offering in Hong Kong, Bloomberg reported, citing unnamed sources.
The shares were sold near the low end of a marketed range, the report said.
The maker of Daliyuan cakes and Copico brand potato chips priced 1.69 billion shares at HK$5.25 (US$0.68) each, it said.
Dali is raising money to increase production as China seeks to rebalance its economy toward more domestic consumption and services.
The Fujian province-based company’s share sale will boost the total value of IPOs in Hong Kong to about US$27.7 billion this year, the highest 11-month tally since 2010.
Three cornerstone investors, including a unit of state-owned investment firm Central Huijin Investment Ltd., agreed to buy US$305 million of stock in the offering, the prospectus shows.
Cornerstone investors typically agree to hold on to their shares for six months in return for early and guaranteed allocation.
Dali plans to start trading Nov. 20, the prospectus shows.
– Contact us at [email protected]