China bottled water giant Nongfu Spring prepares for $1b HK IPO

26 Nov 2019 – Nongfu Spring Co., one of China’s biggest bottled water and beverage companies, is weighing an initial public offering in Hong Kong that could raise at least $1 billion, people familiar with the matter said.

The Hangzhou-based company is working with financial advisers for the potential first-time share sale, according to the people, who asked not to be identified as the information is private. The offering could happen as soon as the first half of 2020, the people said.

A representative for Nongfu Spring didn’t immediately respond to requests for comment.

Nongfu Spring, founded in 1996, produces drinking water, vegetable and fruit juices as well as tea beverages and soft drinks, according to its website. Last year, the beverage giant halted a decade-long exploration for a potential A-share listing in China with Citic Securities Co., according to a statement on China Securities Regulatory Commission website.

The company competes with brands including Ganten and China Resources Group’s C’est Bon in the country’s bottled water market, according to Euromonitor International.

Source: Bloomberg