In Focus
LEGAL | Staff Reporter, Hong Kong

Haidilao looks to fuel international expansion with Hong Kong IPO

The largest Chinese hotpot restaurant chain is expected to list on September 26.

Haidilao International Holding Ltd., is set to kickstart its initial public offering in Hong Kong, seeking as much as US$963 million in order to fuel its international expansion.

According to its latest prospectus, the fast-growing Beijing-based hotpot chain is offering 424.5 million shares from HK$14.80 to HK$17.80. The terms also show cornerstone investors, including Chinese investment firm Hillhouse Capital and Morgan Stanley, agreeing to buy an aggregate US$375 million of stock in the offering.

After the IPO, Haidilao expects to have a market capitalisation of around US$10 to US$12 billion - greater than all Hong Kong-listed restaurant operators combined.

Haidilao’s chief strategy officer Zhou Zhaocheng told a press conference in Hong Kong that the company plans to open roughly 200 new restaurants in 2018, where 15 and 20 of which would be outside China.

New markets they plan to explore are the UK, Australia, Canada and Malaysia. Currently, they have 362 outlets in China alone.

Aside from its expansion plan, they intend to use the net proceeds to develop and implement new technology and partially repay loans.

The restaurant chain is expected to list on September 26.

CMB International and Goldman Sachs are joint sponsors of the listing.

(Photo credit: Haidilao SG Facebook)

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