By Scott Murdoch and Julie Zhu
SYDNEY (Reuters) – Drinks maker China Resources Beverage is set to raise $650 million from Hong Kong’s second largest initial public offering (IPO) this year, pricing it at the top of the range, two sources with direct knowledge of the matter said.
The shares will be sold at the high end of the range of HK$13.50 to HK$14.50 flagged to investors at the deal’s Tuesday launch, added the sources, who spoke on condition of anonymity to discuss confidential information.
China Resources Beverage, which is selling 347.8 million shares, declined to comment on the pricing. At the top of the price range, the company will be valued at $4.39 billion.
The deal will be eclipsed only by an offering from Horizon Robotics to raise $696 million in Hong Kong this year, which is set to be finalised on Monday.
China Resources Beverage makes the popular C’Estbon water brand and a bevy of milk and tea drinks sold across China.
Controlled by state-owned conglomerate China Resources Holdings, the company has flagged that 30% of IPO proceeds would go to boosting the production capacity and efficiency of its supply chain.
A further 23% will be spent on expanding sales channels, with the rest going towards marketing, sales and other efforts.
(Reporting by Scott Murdoch in Sydney and Julie Zhu in Hong Kong; Editing by Clarence Fernandez and Savio D’Souza)
