New | Hotpot chain raises HK$1 billion in IPO
Xiabuxiabu Catering Management (China) is raising HK$1 billion in an initial public offering priced at HK$4.70 a share.
The mainland bar-style, quick-service hotpot restaurant chain set the IPO price in the middle of the indicative price range of HK$4.40 to HK$5.00 a share.
The company said the Hong Kong public offering had been “slightly over-subscribed”, with applications equivalent to 4.07 times the 22,710,000 shares available, representing 10 per cent of the global offering.
Net proceeds from the global offering will be HK$1 billion. Xiabuxiabu said 74.4 per cent of the money, or HK$744.7 million, would be used to open 453 restaurants throughout China by the end of 2018.
About 10 per cent would be used to establish an additional logistics and production centre in Beijing, while 12.6 per cent would be spent on a logistics and production centre in Shanghai.
Trading of the shares will begin on Wednesday.
