Hotpot chain set to raise $129m in HK
Xiabu Xiabu Catering Management, the iconic hotpot restaurant chain on the Chinese mainland, is seeking to raise about HK$1 billion ($130 million) on the Hong Kong stock exchange by offering 227.1 million shares for sale to the public at between HK$4.4 and HK$5 apiece.
Xiabu Xiabu said it has offered its international underwriters an over-allotment option of 34 million additional shares. This option, when exercised, will boost the proceeds of the initial public offering as well as the company’s market capitalization.
The company’s CEO, Yang Shuling, said the company will use the proceeds to help fund the opening of an additional 453 restaurants throughout the mainland. Trading is expected to commence on Dec 17 in lots of 500 shares.