Mainland bottled water giant Nongfu Spring surged on its Hong Kong market debut on Tuesday after being heavily oversubscribed by investors.
Shares of Nongfu Spring opened at 39.8 Hong Kong dollars (5.13 U.S. dollars) Tuesday morning, up significantly from its offer price of 21.5 Hong Kong dollars.
Its public offering was oversubscribed over 1,000 times by local investors and nearly 60 times by international buyers, locking up a record amount of capital of 677.7 billion Hong Kong dollars.
Nongfu Spring is a leading enterprise in packaged drinking water and beverages in China. It reported year-on-year increases of 17.1 percent and 17.3 percent in total revenue in 2022 and 2022, respectively.
The company expects to raise about 8 billion Hong Kong dollars through the offering of over 388 million shares. The funds raised will be used for brand building, increasing production capacity and strengthening business operations, among others. (1 U.S. dollar equals 7.75 HK dollars)