LIULIUMEI launches HK IPO at HKD43.58, targets HKD440 million

LIULIUMEI (06658.HK) launched its Hong Kong IPO on June 5, offering 11.5 million shares at HKD43.58 each to raise HKD440 million.

"The green plum snack maker commands a 4.9% share of China's fruit snack retail market, the largest in the industry," according to Frost & Sullivan data cited in the prospectus.

The IPO comprises 11.46 million H shares, with 10% reserved for Hong Kong retail investors and 90% for international placement. The entry fee for a board lot of 100 shares is HKD4,401.96. CITIC Securities and Guoyuan International are joint sponsors. The subscription period runs until noon on June 10, with trading expected to begin June 15 on the Main Board.

Fanchang Revitalization and other cornerstone investors have committed approximately HKD148 million in total to the listing. The company plans to use the net proceeds of about HKD440 million for expansion and working capital, though a detailed breakdown has not yet been disclosed.

LIULIUMEI also ranked sixth in China's jelly industry by retail sales in 2024, with a 2.9% market share, per Frost & Sullivan. The company focuses on green plum products, a niche within the broader fruit snack category.

The pricing gives the company an enterprise value of roughly HKD2 billion based on the offer. First-day trading on June 15 will test institutional demand for a niche consumer brand amid a subdued Hong Kong IPO market.

This article is for informational purposes only and does not constitute investment advice.