Chinese snacks and beverages-maker Dali Foods Group Company Ltd raised HK$8.87 billion ($1.14 billion) after pricing its Hong Kong initial public offering at the lower end of the expected price range, IFR reported on Saturday, in a deal that will fund potential acquisitions and product development.
The company priced the 1.69 billion new shares, equivalent to about 12 percent of the enlarged share capital, at HK$5.25 each, after marketing the deal at an indicative range of HK$5.00 to HK$6.15, said Thomson Reuters publication IFR citing people familiar with the deal. A Hong Kong spokeswoman for Dali Foods was not immediately available to comment over the weekend.
The IPO comes on the back of several large offerings in Asia in recent weeks, underscoring an upswing in equity activity that investment bankers are counting on to boost revenue in the region by the end of the year. Deal activity has been particularly brisk in Hong Kong, with distressed debt manager China Huarong Asset Management Co raising $2.3 billion in an IPO and China Reinsurance (Group) tapping markets for $2 billion late last month.