Soy-sauce producer Haitian plans to raise US$1.5 billion in Hong Kong IPO, sources say

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The Guangdong-based company is in talks with advisers on a potential share sale in the Asian financial hub and a listing could happen in the first half of next year

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This photo taken on October 19, 2022 shows a worker producing soy sauce in Rugao in China’s eastern Jiangsu province. Photo: AFP

Bloomberg

Published: 5:50pm, 16 Oct 2024Updated: 6:14pm, 16 Oct 2024

Foshan Haitian Flavouring & Food, one of the biggest condiment makers in China, is considering a second listing in Hong Kong that could raise at least US$1.5 billion, people familiar with the situation said.

The Guangdong-based company is in talks with advisers on a potential share sale in the Asian financial hub and a listing could happen in the first half of next year, the people said. Haitian’s Shanghai-listed shares have risen almost 20 per cent this year, giving the company a market value of about US$35 billion.

Deliberations are ongoing and the fundraising size will depend on market conditions, said the people, who asked not to be identified as the information is private. A representative for Haitian did not immediately respond to a request for comment.

Hong Kong is seeing a return of sizeable listings, with Beijing’s economic stimulus fuelling a stock-market rally. About US$7.3 billion has been raised through first-time share sales in the city this year, more than double the US$3.5 billion in the same period in 2023, according to data compiled by Bloomberg.

An undated photograph of the production facility of Foshan Haitian Flavouring & Food. Photo: Captured Online

Haitian could be joining Chinese firms such as Midea Group in pursuing a second listing in Hong Kong. The Chinese appliance maker, which is also based in Foshan and already listed in Shenzhen, raised US$4 billion in its Hong Kong listing last month, spurring optimism that the worst of the city’s capital market slump is coming to an end. Midea’s shares have soared 45 per cent in Hong Kong.