China's largest fruit juice maker seeks approval from Hong Kong stock exchange for November flotation
Beijing Huiyuan Juice Holdings, the mainland's largest fruit juice maker, plans to seek approval this month from the Hong Kong stock exchange to raise about HK$2 billion in an initial public offering as early as November, according to market sources.
Morgan Stanley, UBS and CCB International, the investment banking arm of China Construction Bank, are arranging the sale.
Parent company Beijing Huiyuan Beverage and Food, the mainland's largest drinks company by revenue, said last month that the company had not yet decided on a location, timeframe or size for a possible share sale.
The two mainland juice companies already listed in Hong Kong have met different fates this year. Shares of China Haisheng Juice, which trade at 9.12 times forecast earnings for next year, are down 2.6 per cent, while those of Yantai North Andre Juice, trading at 13.9 times forecast next year's earnings, are up 23 per cent.
The benchmark Hang Seng Index is up 17.7 per cent while the H-share index has jumped 27 per cent.
A consortium of foreign investors, including French food multinational Danone Group and US buyout firm Warburg Pincus, paid US$223 million for a 35 per cent stake in Huiyuan Juice in July. Danone took 22 per cent while the Netherland's Development Finance Company, Hong Kong-based fund Value Partners and Warburg took undisclosed slices of the remaining 12 per cent.