CR Beverage seeks US$640M in Hong Kong IPO to accelerate expansion 

CHINA – China Resources Beverage (CR Beverage) is seeking to raise up to HK$5 billion (US$640 million) through an initial public offering (IPO) in Hong Kong.  

The company is offering 347.8 million shares at a price of HK$14.50 (US$1.87) per share, with an option to increase the offering by 52.2 million shares in response to excess demand. 

The IPO filing, submitted to the Hong Kong Stock Exchange on 15 October, indicates that the funds will primarily be used for expansion. 

Proceeds from the IPO will support CR Beverage’s strategic growth plans, including expanding production capacity, improving supply chain efficiency, and enhancing sales channels.  

Additionally, the company will allocate funds for marketing, research and development, and general working capital. Around HK$378 million (US$48.6M) will be set aside for potential mergers and acquisitions. 

The IPO listing is scheduled for 23 October, with shares expected to begin trading shortly afterward. 

CR Beverage, a subsidiary of China Resources Holdings, is one of the largest players in China’s packaged drinking water market, second only to Nongfu Spring.  

The company owns popular water brands such as C’estbon and L’eau and has expanded into other soft drinks, including the Zhi Ben Qing Run herbal tea line, Mi Shui juices, and Mulene sports drinks. 

In 2023, CR Beverage reported revenue of 13.5 billion yuan (US$1.9 billion), a 7 percent increase from the previous year.  

Gross profit rose by 15 percent to 6 billion yuan, while net profit increased by 31 percent to 1.3 billion yuan (US$182.7M). Packaged drinking water remains the largest revenue driver, contributing 92 percent of total sales, which amounted to 12.4 billion yuan (US$1.7B). 

The company currently operates 13 manufacturing plants across China, alongside 31 additional factories managed through partnerships.  

As CR Beverage looks to expand its presence further, the funds raised through the IPO will play a key role in fueling its growth in the competitive Chinese beverage market. 

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