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Chinese Energy Drink Maker Eastroc Beverage Aims for $1.3 Billion in Hong Kong Listing

Eastroc Beverage Group Co. has initiated investor orders for its second listing on the Hong Kong Stock Exchange. The company's decision to list in Hong Kong follows its initial public offering in Shenzhen in 2017, where it raised approximately HK$1.6 billion. The offering, which is scheduled to price on February 23, will consist of 472 million shares priced at HK$21.70 to HK$25.80 apiece.

By Emergent AI Desk

· 3 min read · 1 source

Chinese energy drink maker Eastroc Beverage Group Co. has commenced taking investor orders for its second listing in Hong Kong, which could raise up to HK$10.1 billion ($1.3 billion).

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Chinese energy drink manufacturer Eastroc Beverage Group Co. has initiated investor orders for its second listing on the Hong Kong Stock Exchange (HKEX), aiming to secure up to HK$10.1 billion ($1.3 billion) in funds. The listing, which is expected to be one of the most significant capital-raising events in the city this year, comes amid a surge in Hong Kong initial public offerings (IPOs), making Eastroc the latest addition to the trend.

Eastroc Beverage, which produces and sells energy drinks under the brand name "Nine One," is primarily focused on the Chinese market. The company's decision to list in Hong Kong follows its initial public offering in Shenzhen in 2017, where it raised approximately HK$1.6 billion ($206 million). Eastroc's Hong Kong IPO is likely to be oversubscribed, given the growing popularity of energy drinks in China and the company's strong market position.

According to a report by Bloomberg, Eastroc Beverage has appointed China International Capital Corporation Ltd. and Morgan Stanley (Asia) Ltd. as joint sponsors for the listing. The offering, which is scheduled to price on February 23, will consist of 472 million shares priced at HK$21.70 to HK$25.80 apiece.

The strong demand for Eastroc's IPO reflects the growing popularity of energy drinks in China, which has become the world's largest consumer of the beverage category. The Chinese energy drink market is expected to expand at a compound annual growth rate (CAGR) of 12.5% between 2021 and 2026, according to a report by ResearchAndMarkets.com.

Eastroc Beverage's market success can be attributed to its strategic focus on the Chinese market, which is the largest and most dynamic consumer base for energy drinks. The company has also adopted a diverse product portfolio that includes various flavors and sizes catering to different consumer segments. Additionally, Eastroc has established a robust distribution network, which allows the company to reach consumers in both urban and rural areas.

In conclusion, Eastroc Beverage's second listing in Hong Kong represents a significant milestone for the Chinese energy drink maker, as it looks to expand its operations and capitalize on the growing demand for energy drinks in China. The successful IPO is also a testament to the city's status as a leading global financial hub and its ability to attract high-profile listings.

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References (1)

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  1. China’s Eastroc Beverage Seeks Up to $1.3 Billion From Hong Kong Listing

    bloomberg.com · bloomberg.com ·

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