China Resources Beverage shares rise in Hong Kong trading debut as IPOs gather momentum

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Trading under the code 2460, CR Beverage closed the day 14.6 per cent higher at HK$16.62 from its IPO price of HK$14.50

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Executives of China Resources Beverage (Holdings) Company at the bottler’s trading debut in Hong Kong on October 23, 2024: Wang Xiangming, chairman of the parent company China Resources Group (left), and Zhang Weitong, chairman of the bottler (right). Photo: Mia Castagnone

Mia Castagnone

Published: 9:42am, 23 Oct 2024Updated: 4:33pm, 23 Oct 2024

Shares of China Resources Beverage advanced in their trading debut in Hong Kong, as the momentum of initial public offerings (IPO) gathers pace in one of the busiest weeks this year for the local exchange, which may raise up to US$1.3 billion.

Listed under the code 2460, CR Beverage changed hands at HK$16.50, a 13.8 per cent jump from its IPO price of HK$14.50, in first trades when chairman Zhang Weitong struck the ceremonial gong to mark the debut with Wang Xiangming, the chairman of its state-controlled parent company. The stock ended the day 14.6 per cent higher at HK$16.62.

CR Beverage raised HK$5.04 billion (US$650 million) after selling its shares to outside investors at the top end of the marketed price range. The IPO attracted bids that exceeded the available shares by 234 times, which may encourage CR Beverage to exercise an option to sell an additional 52.2 million shares at the same price and swell the proceeds to US$747 million.

The opening premium values CR Beverage at HK$39.02 billion, according to data from the stock exchange.

“I would like to express my sincere gratitude to the government and relevant departments at all levels of the group for their long-term care and assistance to China Resources Beverage, [and] for the strong support given by the Hong Kong stock exchange and various intermediary agencies in the company’s IPO process,” Zhang said before the commencement of trade.

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The IPO attracted nine cornerstone investors who were slated to buy US$310 million worth of shares, according to the term sheet. UBS Asset Management was to take up about a third of the cornerstone block.