BRIEF: Chinese ‘Red Bull rival’ Eastroc targets $1.3 billion in Hong Kong IPO
Energy drink manufacturer Eastroc Beverage (Group) Co. Ltd. (9980.HK, 605499.SH) launched its IPO on Monday, aiming to sell 40.89 million shares for HK$248 apiece to raise HK$10.1 billion （$1.3 billion）. Shares will be sold in lots of 100, requiring an upfront cost of HK$25,050 per lot. Subscriptions close on Jan. 29, with trading set to commence on Feb. 3.
Eastroc was founded in 1987 as a state-owned enterprise primarily producing herbal tea drinks. It became a private company in 2003, when sales general manager Lin Muqin took over. Lin later pivoted to energy drinks, capitalizing on surging popularity of Red Bull in China. The company went public on the Shenzhen Stock Exchange in 2021.
Eastroc ranked second in China’s functional beverage market by 2024 sales with 23% of the market. Its distribution network covers over 4.3 million retail outlets across nearly all cities in China by the end of September last year.
The company recorded a 34% year-on-year increase in revenue to 16.84 billion yuan in the first nine months of last year, while its profit jumped 39% to 3.76 billion yuan over that time.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
