Nongfu Spring Eyes HK IPO To Raise HK$1bn Plus

Bottled water giant Nongfu Spring said on Monday it is aiming to raise more than US$1 billion in a Hong Kong listing, as Beijing cajoles Chinese companies to raise cash at home.

Nongfu, which claims to be number one in China's massive bottled water market, is ubiquitous across the country, where most people shun tap water for health reasons.

In a filing to the Hong Kong Stock Exchange a day ahead of the listing, the company said it would put more than 388 million shares on the market at an introductory price of HK$21.50 (US$2.77).

The pricing means a potential listing worth nearly US$1.1 billion -- which Bloomberg said would be the second-biggest IPO by a food and beverage company this year.

Nongfu Spring, which is headquartered in the eastern city of Hangzhou, supplies mineral water unlike most of its competitors who sell purified water.

The brand holds around a quarter of the bottled water market in China, according to London-based firm Mintel.

China previously lost the listings of internet giants Alibaba and Baidu to Wall Street.

But it is looking to change that as friction rises with the United States across all fronts, and as China's own capital markets mature. (AFP)