On October 23, 2024, the parent company of Yi Bao, China's largest drinking pure water company, China Resources Beverage (Holdings) Company Limited (referred to as "China Resources Beverage") (02460.HK), successfully listed on the main board of the Hong Kong Stock Exchange.

This IPO of China Resources Beverage, globally issued 0.3478262 billion shares, accounting for 8% of the total shares of the company after the completion of the issuance. The upper limit price per share is set at 14.520 Hong Kong dollars, raising a total of approximately 5.043 billion Hong Kong dollars, with net proceeds of approximately 4.903 billion Hong Kong dollars, the second largest IPO on the Hong Kong Stock Exchange this year.

China Resources Beverage also has a 15% oversubscription allocation rights, if fully exercised, it can issue an additional maximum of 52.1738 million shares, raising up to an additional 0.757 billion Hong Kong dollars, with the final fundraising expected to reach 5.8 billion Hong Kong dollars.

China Resources Beverage's IPO this time received 234.49 times oversubscription in public offering, and 24.47 times oversubscription in international offering.

In this IPO, China Resources Beverage introduced 9 cornerstone investors, collectively subscribing for approximately 0.166 billion shares (approximately 2.407 billion Hong Kong dollars) of the shares issued. Among them, UBS subscribed through UBS AM Singapore for 0.11 billion US dollars, China Travel Group subscribed for 70 million US dollars, Boyu Capital subscribed through Wildlife Willow for 30 million US dollars, China Post Insurance subscribed for 30 million US dollars, Oaktree subscribed for 30 million US dollars, Indonesia PT Indadi subscribed for 10 million US dollars, Athos subscribed for 10 million US dollars, Ghisallo subscribed for 10 million US dollars, Pamalican subscribed for 10 million US dollars. The subscribed shares account for 47.72% of the total shares issued globally and 7.07% of the total shares after the global issuance is completed.

The prospectus shows that in the shareholding structure of China Resources Beverage after listing, China Resources Group holds 51.11% of the shares; Plateau Consumer Fund, L.P* holds 34.07% through Plateau; public shareholders hold 14.81%.

* The general partner of Plateau Consumer Fund, L.P. is Plateau Investment Limited, indirectly wholly owned by Ms. Dong Yi; the largest limited partner of Plateau Consumer Fund, L.P. is Ming Yu, an indirect wholly-owned subsidiary of Bank of China (03988.HK, 601988.SH), holding 36.8% of the limited partnership interests.

China Resources Beverage is one of the earliest companies in China specializing in the production and packaging of drinking water, with a product mix of 13 brands including "Yibao", "Zhibenqingrun", "Mishui Series", "Holiday Series", and "Zuoweichashi". According to the Zuo Shi Consultation Report, in 2023, based on retail sales, China Resources Beverage ranked first in the Chinese drinking pure water market, with a market share of approximately 32.7%.

The main intermediary team for the IPO listing of China Resources Beverage (02460.HK) includes:

Ubs, BoCom International, Citic Sec/Citic CLSA, BofA Securities are its joint sponsors, overall coordinators, joint global coordinators, joint bookrunners, joint lead managers;

China International Capital Corporation, CMB International are its joint global coordinators, joint bookrunners, joint lead managers;

HSBC, Huatai International, ABCI, CCB International are its joint bookrunners, joint lead managers;

Deloitte is its auditor;

Jingtian & Gongcheng, Haiwen & Partners are its company China lawyers, company Hong Kong and USA lawyers;

Zhong Lun, Pu Hui are its brokerage China lawyers, brokerage Hong Kong and USA lawyers;

Zhuoshi Consulting is its industry consultant.

Link to the prospectus of China Resources Beverage: https://www1.hkexnews.hk/app/sehk/2024/106408/documents/sehk24042201883_c.pdf

https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1015/2024101500010_c.pdf