BRIEF: IFBH surges in Hong Kong trading debut

Shares of popular coconut water brand parent IFBH Ltd. (6603.HK) jumped in their Hong Kong trading debut on Monday, opening up 58% and holding on to most of the gains to close up 44% at HK$40 by the midday break.

The company sold 41.67 million shares for HK$27.80 apiece to raise net proceeds of about HK$1.07 billion ($137 million). The public offering for local Hong Kong investors was oversubscribed by 2,681 times, while the international placement nearly fully subscribed.

IF has topped the Chinese coconut water market for the last five years, giving it 34% of the market last year. The brand has been the leader in Hong Kong since 2016, commanding 60% of the market.

The company plans to use 30% of the IPO proceeds for warehousing and distribution expansion, 22% for brand building, and 13% to consolidate its dominant position in China, while also expanding across Australia, America and Southeast Asia. It will use another 20% for acquisitions in Asia, North America and Australia.

By Lau Chi Hang

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