HK Stock Market Move | CR BEVERAGE (02460) fell more than 4% at the close, partially exercising the rights issue to raise nearly HK$720 million. Institutions say the fierce price war in packaged water.

CR BEVERAGE (02460) fell more than 4% at the close, hitting a low of 13.9 Hong Kong dollars during trading hours, setting a new low for the IPO. As of the time of writing, it dropped 3.59% to 13.98 Hong Kong dollars, with a trading volume of 32.27 million Hong Kong dollars. On the news front, CR BEVERAGE announced that on November 12, certain coordinators exercised their over-allotment option, involving a total of 50.3704 million shares, accounting for approximately 14.48% of the total offering. Priced at 14.50 Hong Kong dollars per share, the net proceeds amounted to approximately 719 million Hong Kong dollars. With this partial exercise of the over-allotment option, CR BEVERAGE's IPO fundraising amount increased to approximately 5.774 billion Hong Kong dollars. CMB International pointed out that since this summer, there has been intense price competition among bottled water companies. Nongfu Spring leads the price war, with pricing fluctuations relatively large. In addition, the competition between Green Bottle Water and Red Bottle Water has had a suppressive effect on distribution channels. It is expected that the duopoly competition in the bottled water market will remain unchanged; in the short term, major brands reducing prices will continue to lead to a siphoning effect between water brands, with the penetration rate of leading brands continuing to increase. As Nongfu Spring continues to promote Green Bottle Water in the long term, its position will be further solidified.