Supply Chain Optimisation Drives CR Beverage's Successful IPO in Hong Kong

Supply Chain Optimisation: Key to CR Beverage's IPO Success

Shares of China Resources Beverage (Holdings) advanced in their trading debut in Hong Kong, as the momentum of initial public offerings (IPO) gathers pace in one of the busiest weeks for the local exchange. Trading under the code 2460, CR Beverage jumped 13.8 percent to change hands at HK$16.50, from its IPO price of HK$14.50. The Shenzhen-based company raised HK$5.04 billion ($650 million) after offering its stock at the top end of an expected price range.

Strategic Investment and Expansion

• The stock attracted bids that exceeded the available shares by 234 times, an oversubscription that may encourage CR Beverage to exercise an option to offer more shares.
• UBS Asset Management would take up about a third of the cornerstone block, while other investors include China Travel Service Holdings, Wildlife Willow, China Post Life Insurance, and Oaktree Capital Management.
• Nearly a third of the fundraising is earmarked for strategic expansion, production, and supply chain optimisation.
• The remainder will support research, digitalisation, mergers and acquisitions, and other corporate initiatives.

Market Trends and Revival

CR Beverage was one of the first in the packaged drinking water sector in China, growing to become the second-largest bottler after Nongfu Spring. The IPO aligns with a broader market revival, highlighted by Asia's busiest week for new listings in over two years, including another multimillion-dollar listing by Horizon Robotics.

As Hong Kong's market activity picks up following Midea Group's successful IPO, investor sentiment remains optimistic due to substantial economic measures from Beijing.