Hong Kong IPO: China Resources taps banks for US$1 billion listing of C’estbon bottled-water producer
- The conglomerate is working on preparations to list China Resources C’estbon Beverage (China) in Hong Kong, sources say
- The IPO would be Hong Kong’s biggest from the consumer sector since China Tourism Group Duty Free’s US$2.4 billion listing in August
China Resources Holdings has selected banks for the Hong Kong initial public offering (IPO) of its bottled-water unit, which could raise about US$1 billion, according to people with knowledge of the matter.
The conglomerate is working with Bank of America and BOC International (BOCI) on the listing preparations of China Resources C’estbon Beverage (China), the people said. Citic Securities and UBS Group are also arranging the deal, which may happen as soon as this year, the people said, asking not to be identified as the information is private.
Deliberations are ongoing and details of the IPO including size, timing and bank line-up could still change, the people said. Representatives for Bank of America and Citic Securities declined to comment, while representatives for BOCI, China Resources and UBS did not immediately respond to requests for comment.
Any sizeable share sale would boost Hong Kong’s IPO market, which has been in the doldrums for much of the past two years amid geopolitical tensions and global concern over rising interest rates.