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Mia Castagnone

China Resources Beverage (CR Beverage) is aiming to raise up to HK$5 billion (US$640 million) via an initial public offering in Hong Kong to fund it expansion plans.
The packaged water company will offer 347.8 million shares at HK$14.50 each, according to a filing to the Hong Kong stock exchange on Tuesday. It may increase the size of the IPO by 52.2 million shares to meet excess demand if necessary.
At HK$14.50, CR Beverage could generate as much as HK$5 billion in proceeds before underwriting commissions, with a third of the funds going towards strategic expansion and supply chain efficiency.
UBS, BOCI, Citic and Merrill Lynch are the joint sponsors of the deal.
The company will take orders from investors until Friday, and shares are expected to list on the exchange on October 23.
CR Beverage was one of the first companies to enter the packaged drinking water business in China. It has since grown to become the second-largest player after Nongfu Spring.


The sales of its most recognisable product, “C’estbon” bottled water, reached 39.5 billion yuan (US$5.5 billion) in 2023, according to the company.
The rest of the IPO proceeds will go towards expansion of its sales channels and marketing activities. The funds will also be used for R&D, digital upgrades, investment and general use.
A total of 42 companies raised US$7.14 billion on the main board of the Hong Kong stock exchange in the first nine months of the year, double the total from a year earlier, according to London Stock Exchange Group (LSEG) data.
The increased fundraising helped Hong Kong rise to fifth on the global IPO league table in September from 13th in June.
The pickup in fundraising came from the IPO of Chinese home appliance maker Midea Group. It raised US$4.6 billion after exercising an overallotment option, making it the biggest IPO in Hong Kong in three years and the second-largest worldwide this year.
Amid a slower economic environment, global IPO proceeds declined 22 per cent to US$76 billion in the year to September, the slowest nine-month total since 2009, LSEG data showed.
Hong Kong’s stock market rally in recent weeks has led to a slew of companies reviving their listing applications. The Hang Seng Index has risen nearly 20 per cent this month after Beijing rolled out fiscal stimulus to stabilise growth.
The listing pipeline includes logistics company SF Express, Chinese cosmetics giant Mao Geping and e-commerce giant JD.com’s industrial supply chain technology and service provider JD Industrials.


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China’s second-largest bottled water firm plans to sell 347.8 million shares at HK$14.50 each


China’s second-largest bottled water firm plans to sell 347.8 million shares at HK$14.50 each.


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