Hong Kong IPO pipeline grows as Chinese restaurant chain Xiaocaiyuan files listing application
- Xiaocaiyuan International Holding from Anhui province operates more than 500 restaurants across China
- The restaurant chain’s profit rose to 429 million yuan (US$60 million) in the first nine months of last year, compared with 207 million yuan a year earlier
Mainland Chinese restaurant chain Xiaocaiyuan International Holding has filed an initial public offering (IPO) application in Hong Kong, hoping to raise funds to expand its branch network offering fare from the eastern Anhui province.
The Tongling, Anhui-based chain joins a handful of companies, mostly from the mainland, that have been eager to test the IPO waters in the city so far this year.
Xiaocaiyuan’s filing late on Tuesday did not provide details, but an IFR report from August said it could raise US$200 million. UBS and Huatai Financial Holdings are the overall coordinators of the IPO.
Harvest Capital, a Chinese private-equity company and the company’s sole external investor, injected 500 million yuan (US$69.7 million) into Xiaocaiyuan in December. This was preceded by an initial investment in March, but the amount was not disclosed.
Founded by Wang Shugao in 2013, who worked as a chef previously, Xiaocaiyuan currently operates more than 500 restaurants across China.