Chinese drinks maker Eastroc’s US$1.3 billion Hong Kong IPO gives it wings to soar
Shanghai-listed firm is selling 40.9 million shares for HK$248 each, which would give it a market cap of about US$21 billion
Chinese energy-drinks maker Eastroc Beverage has kicked off a Hong Kong initial public offering (IPO) to raise up to HK$10.1 billion (US$1.3 billion), making it the city’s largest listing this year that has already seen a dozen companies raise more than US$4.5 billion.
The Shanghai-listed firm was offering 40.9 million shares at a maximum price of HK$248 each, according to its prospectus filed to the Hong Kong stock exchange on Monday. At this price, the firm would be valued at around US$21 billion. The Hong Kong shares are expected to start trading on February 3.
Eastroc’s shares closed 1 per cent lower at 250.80 yuan on Monday.
Shenzhen-based Eastroc, which makes an alternative to Red Bull, plans to use the proceeds to strengthen its market-leading position.
It was China’s largest drinks company by sales volume from 2021 to 2024, with its market share reaching 26.3 per cent from 15 per cent during the same period, according to market research by Frost & Sullivan.
Eastroc is betting on China’s rapidly expanding energy and sports drinks segments, driven by evolving consumer preferences and health awareness. Sales of energy drinks were expected to reach 180.7 billion yuan (US$26 billion) by 2029 and sales of sports drinks were projected to hit 99.7 billion yuan, according to Frost & Sullivan, reflecting compound annual growth rates of 10.3 per cent and 12.2 per cent, respectively, from 2025 to 2029.