Baby formula maker China Feihe said to raise $856m in Hong Kong IPO

Photo: Tanaphong Toochinda/unsplash

China Feihe Ltd., a baby formula producer, raised HK$6.7 billion ($856 million) after pricing its Hong Kong initial public offering at the bottom of its marketed range, people familiar with the matter said.

The Beijing-based company sold 893.3 million shares at HK$7.50 each, the people said, asking not to be identified as the information is private. Shares had been offered at HK$7.50 to HK$10 apiece, implying a market value of $8.5 billion to $11.4 billion.

A representative for Feihe said there’s no immediate comment.

The offering is Feihe’s at least second attempt to conduct an IPO in Hong Kong after it applied for a listing in the city in May 2017. The dairy company went private from the New York Stock Exchange in 2013 amid a wave of delistings by U.S.-traded Chinese firms.

The share sale will add to the deal momentum in Hong Kong, which has seen a flurry of IPO activity in the past two months despite ongoing anti-government protests and the prolonged U.S.-China trade war. After a summer drought, Hong Kong saw several billion-dollar-plus IPOs, including the world’s second-largest this year by Anheuser-Busch InBev NV’s Asian unit.

Feihe plans to use the IPO proceeds for offshore debt repayment, potential acquisitions and funding the operation of a new manufacturing plant. The company is expected to start trading on Nov. 13.

JPMorgan Chase & Co., China Merchants Securities Co Ltd. and CCB International Holdings Ltd. are joint sponsors of the offering.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.