New Stock News | It is rumored that Foshan Haitian Flavouring and Food will go public in Hong Kong to raise at least HK$11.7 billion. This will be the second largest fundraising of the year.

According to informed sources, one of China's largest seasoning manufacturers, Foshan Haitian Flavouring and Food (603288.SH), has appointed CICC, Goldman Sachs, and Morgan Stanley to handle its second listing in Hong Kong, with the fundraising amount rumored to be at least $1.5 billion (approximately 11.7 billion Hong Kong dollars). If the amount is confirmed, it will be the second largest IPO since the beginning of the year, second only to Midea Group Co., Ltd (00300). The company is rumored to plan to submit its preliminary prospectus to HKEX as early as January next year. It was previously rumored that the company had engaged KPMG as its auditing agency for the listing. Previously, Haitian announced that to further promote its globalization strategy, enhance its international brand image, and overall competitiveness, the company plans to issue H-shares and apply for listing on the main board of the Hong Kong Stock Exchange. The company stated that it will fully consider the interests of existing shareholders and the conditions of domestic and international capital markets, and select an appropriate time and issuing window to complete the listing within the validity period of the shareholder resolution. The company is actively discussing the relevant work of the listing with related intermediaries, and apart from the relevant resolutions passed by the board of directors, the specific details of the listing have not been finalized. Founded 400 years ago in Foshan, Haitian, not only is one of the first Chinese time-honored brands, but also a "top student" among A-share listed companies. Since its listing in 2014, it has maintained steady and continuous growth, with revenue growing from 9.8 billion yuan to over 25 billion yuan, an increase of over 150%. The A+H dual listing is seen in the industry as an important means and channel for Foshan Haitian Flavouring and Food to seek new growth points in the international market. It is worth noting that in September this year, Foshan Haitian Flavouring and Food underwent a personnel change, replacing the "leader" and declaring Cheng Xue as the chairman, while former chairman Pang Kang exited the board of directors. Subsequently, in October, there were rumors in the industry about Haitian's plan to go public in Hong Kong, and in December, Foshan Haitian Flavouring and Food officially announced the plan to list in Hong Kong. It is also believed in the industry that Haitian's listing in Hong Kong may be the new chairman's "first fire" after taking office. Currently, Haitian has five production bases in China, with an annual production and sales volume exceeding 4 million tons. Haitian has a large product matrix, including 10 series of more than 300 varieties and over 1000 specifications including soy sauce, oyster sauce, sauces, vinegar, cooking wine, etc. Its products are not only available in China but also in over 100 countries and regions worldwide. Financially, this year, Foshan Haitian Flavouring and Food's performance has rebounded. In the first three quarters of this year, Foshan Haitian Flavouring and Food achieved a revenue of 20.399 billion yuan, a year-on-year increase of 9.38%; and a net profit of 4.815 billion yuan, a year-on-year increase of 11.23%.