<article>Haidilao International Holding Ltd., China’s biggest hotpot restaurant chain, is seeking to raise as much as $963 million in a Hong Kong initial public offering.</article>

Haidilao International Holding Ltd., China’s biggest hotpot restaurant chain, is seeking to raise as much as $963 million in a Hong Kong initial public offering.
The Beijing-based firm is offering 424.5 million shares at HK$14.80 to HK$17.80 apiece, according to terms for the deal obtained by Bloomberg on Monday. Cornerstone investors including Chinese investment firm Hillhouse Capital and Morgan Stanley have agreed to buy a combined $375 million of stock in the offering, the terms show.
Haidilao’s IPO price range values the company at 25.1 times to 30.2 times its estimated 2019 earnings, people with knowledge of the matter said. The figures assume a so-called over-allotment option isn’t exercised, according to the people, who asked not to be identified because the information is private.
A Hong Kong-based external representative for Haidilao declined to comment.
Any deal would add to the $24.5 billion of first-time share sales in Hong Kong this year, more than double the $9.2 billion of deals during the same period in 2017, data compiled by Bloomberg show. Meituan Dianping, the Chinese restaurant review and delivery giant, started taking orders last week for a Hong Kong IPO that could raise as much as $4.4 billion.
Haidilao’s restaurants are known for serving spicy broths and providing attentive customer service, which includes giving free manicures, shoulder massages and dance performances. Hillhouse and Greenwoods Asset Management have each agreed to buy about $90 million of shares in the offering as cornerstone investors, according to Monday’s terms.
Morgan Stanley and Snow Lake Capital committed about $80 million each, while Ward Ferry will invest about $35 million. Haidilao plans to take investor orders through Sept. 17, the terms show. It plans to price the offering Sept. 18 Hong Kong time and begin trading Sept. 26.
CMB International Capital Ltd. and Goldman Sachs Group Inc. are joint sponsors of the listing.
Bloomberg

Haidilao International Holding Ltd., China’s biggest hotpot restaurant chain, is seeking to raise as much as $963 million in a Hong Kong initial public offering.

China's top hotpot chain Haidilao attracts Hillhouse Capital to $963m IPO

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China's top hotpot chain Haidilao attracts Hillhouse Capital to $963m IPO

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