Will Chinese bottled water giant Nongfu Spring’s Hong Kong IPO lead to more success for its low profile billionaire founder?
- Nongfu Spring is seeking up to US$1 billion in a Hong Kong initial public offering
- Zhong Shanshan, 65, holds 87 per cent of the company and is currently the 29th wealthiest person in China
Zhong, 65, is currently estimated to be worth US$11.6 billion, and is the 29th wealthiest person in China and the 160th richest person globally, according to Forbes. He holds a 87 per cent stake in Nongfu Spring, and its listing is expected to push him further up the ranks of China’s and the world’s richest people.
The company announced its initial public offering (IPO) on Tuesday at an indicative price of HK$19.50 (US$2.50) to HK$21.50 per share, which means it could raise up to HK$8.35 billion at the top end of the range, according to its filing to the stock exchange.
Nongfu Spring will sell about 388.2 million shares, which represent 3.5 per cent of its outstanding share capital. It has given an overallotment option to its underwriters, who can sell an additional 58.2 million shares in case of strong demand from investors, according to a term sheet seen by the South China Morning Post.
The listing’s bookrunners include Citic Securities, Citi, CICC and Morgan Stanley, and the latter two are also joint sponsors of the deal. Its final offer price is expected on Friday and trading on the main board will commence on September 8.
