Bottled water giant Nongfu Spring on Monday said it is aiming to raise more than $1 billion in a Hong Kong listing, as Beijing cajoles Chinese companies to raise cash at home.
Nongfu, which claims to be number one in China’s massive bottled water market, is ubiquitous across the country, where most people shun tap water for health reasons.
In a filing to the Hong Kong Stock Exchange a day ahead of the listing, the company said it would put more than 388 million shares on the market at an introductory price of HK$21.50 (US$2.77).
The pricing means a potential listing worth nearly $1.1 billion – which Bloomberg said would be the second-biggest initial public offering (IPO) by a food and beverage company this year.
Nongfu Spring, which is headquartered in the eastern city of Hangzhou, supplies mineral water unlike most of its competitors who sell purified water.
The brand holds around a quarter of the bottled water market in China, London-based firm Mintel said.
China previously lost the listings of internet giants Alibaba and Baidu to Wall Street.
But it is looking to change that as friction rises with the US across all fronts, and as China’s own capital markets mature.