Key Takeaways:
Eastroc has filed a second Hong Kong IPO application, after its original one lapsed, showing its sales rose 37% in the first half of this year
A billion-dollar listing could help the beverage maker fund new production bases as it expands beyond its original energy drink focus
In 2017, Eastroc Beverage (Group) Co Ltd. (605499.SH) was largely confined to its home base in South China's Guangdong province, where it started as a state-owned enterprise in 1994. Fast forward to the present, when, under its current private ownership, it has served up its signature drinks across China and is taking baby steps into overseas markets in Indonesia, Vietnam and Malaysia.
Now, the company is aiming to serve up its stock to thirsty Hong Kong investors who seem eager to purchase just about anything in one of the city's best IPO markets in years. Despite its old-economy background, the company could attract strong interest for its rapid growth story as it expands both geographically beyond China, and also into new beverage areas beyond its original energy drink focus.
The company's stock is already listed across the border in Shanghai, and the new application would follow a recent trend for globally minded Chinese companies already listed in Shanghai and Shenzhen to make second IPOs targeting more international investors in Hong Kong.
As of June, Eastroc had engaged with over 250 million customers, had 4.2 million points of sale and 3,200 distribution partners, according to its new listing document filed last week, its second such filing after its original application in April lapsed. The company has hired heavy-hitting underwriters for the listing, including Huatai International, Morgan Stanley and UBS, with earlier reports indicating it could raise up to $1 billion. Some of that would go to building new production bases, including one on South China's Hainan island, which broke ground in April, aimed at serving the company's small but growing ...
