Chinese hotpot chain Haidilao raised nearly US$1 billion in its Hong Kong initial public offering by pricing its shares at the top of an indicated range, Reuters reports, citing people familiar with the matter.
Haidilao sold about 8 percent of its enlarged equity capital at HK$17.80 (US$2.27) per share, giving it a valuation of about US$12 billion, according to the report.
The top-of-range pricing points to good demand for the shares and optimism about the firm’s growth prospects.
Haidilao mainly serves spicy Sichuan style hotpot and is popular for the free services and entertainment such as manicures and board games offered to waiting customers,
The company, co-founded by former tractor factory worker Zhang Yong in 1994, had set a price range of HK$14.8 to HK$17.8 per share last week.
It could raise as much as US$1.1 billion in total if a 15 percent over-allotment option is exercised, the report noted.
Haidilao plans to use the proceeds to fund its international expansion into markets including the United Kingdom and Canada, and to develop and implement new technology in a bid to better control food safety after food hygiene issues.
It already operates in Japan, South Korea, the United States and Singapore, besides running more than 300 restaurants across China.
The IPO attracted prominent firms, including Hillhouse Capital and Morgan Stanley, as cornerstone investors who together committed to buy US$375 million worth of shares.
Haidilao will begin trading on the Hong Kong bourse on Sept. 26.
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