Jiumaojiu raises HK$2.08 billion in Hong Kong IPO

The Guangzhou-based restaurant group plans to use almost three-fourths of the proceeds for its store expansion.

Jiumaojiu reported that it has raised HK$2.08 billion (US$267.4 million) from its global offering in Hong Kong.

Based on a disclosure sent to the Hong Kong Stock Exchange, the Guangzhou-based restaurant group offered its shares at HK$6.60 (US$0.85) each or 333.4 million with an initial local offer share amounting to 33.4 million.

The company had to reallocate some of its international share subscription to its local share offering as it was oversubscribed 638 times.

The company plans to use almost three-fourths, or HK$1.5 billion (US$192.8 million) of the proceeds for its store expansion with HK$917.1 million (US$118 million) going to its fish restaurant brand Tai Er’s 180 targeted store openings by 2021.

The remaining portion of the proceeds will go to loan repayment and other operational enhancements.

Jiumaoiiu currently operates 328 stores, including franchised-owned outlets, in the mainland under its five brands, such as its namesake brand, Zong Cooking Spicy Kebab, Double Eggs Pancake and Uncle Chef.