Date
23 July 2017
A replica of Transformers character Bumblebee stands in front of Qianmen Gate as part of a promotion for the hit movie Transformers: Age of Extinction in Beijing for Chinese food company Zhouheiya. Photo: AP
A replica of Transformers character Bumblebee stands in front of Qianmen Gate as part of a promotion for the hit movie Transformers: Age of Extinction in Beijing for Chinese food company Zhouheiya. Photo: AP

Chinese food company Zhouheiya plans US$500 mln Hong Kong IPO

A Chinese food company famous for its spicy dried-duck snacks and an appearance in a Hollywood blockbuster movie is in the home stretch of a planned listing in Hong Kong.

Zhouheiya Food Co. is expected to file an application for an iitial public offering in the next couple of weeks, looking to raise up to US$500 million, the Wall Street Journal reports, citing people familiar with the matter.

Zhouheiya, which sells dried-duck heads and necks among other snacks, could be the first food company to go public in Hong Kong this year.

Chinese private snack and beverage group Dali Foods Group Co. Ltd. raised US$1.15 billion in November in the sector’s biggest IPO last year, according to Dealogic.

Dali Foods trades about 20 percent below its IPO price.

WH Group Ltd.’s US$2.4 billion float in July 2014 is the biggest food and beverage IPO on record in Hong Kong, Dealogic data shows.

Founded in 2006, Zhouheiya has chain stores and factories in more than 10 cities in China, with online shops on Chinese e-commerce sites such as Alibaba’s Tmall and JD.com.

It posted a net profit of 306 million yuan (US$46.7 million) in 2015, according to data from China’s company registration website.

Its investors include Shenzhen private  equity firm Tiantu Capital.

With an ambition of “going to the world,” Zhouheiya, or “Mr. Zhou’s black duck” in Chinese, made an appearance in the 2014 Hollywood hit “Transformers: Age of Extinction”.

The cameo was arranged by a Chinese firm that organizes product placements in Hollywood movies.

Credit Suisse Group A.G. and Morgan Stanley are sponsors, or banks responsible for the IPO.

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