Global Funds Flood Back to Hong Kong IPOs as Haitian Flavouring Launches $1.2 Billion Share Sale
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An electronic screen and ticker at the Exchange Square Complex, which houses the Hong Kong Stock Exchange, on Feb. 26, 2025.
With international funds returning to Hong Kong IPOs, Chinese condiment and sauce giant Haitian Flavouring & Food Co. launched its HK$10 billion ($1.27 billion) H-share offering Wednesday — marking another major “A-share first, H-share later” listing that underscores a broader IPO resurgence fueled by strong global investor demand.
Wang Yajun, head of equity capital markets for Goldman Sachs Asia ex-Japan, said international long-term funds are clearly resuming their participation in Hong Kong listings this year, with the number of global investors in some IPOs surpassing 20 — up from just a handful in 2022 and 2023.
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- Haitian Flavouring & Food Co. launched a HK$10 billion ($1.27 billion) H-share offering in Hong Kong, securing eight cornerstone investors for nearly half the offering.
- This offering exemplifies the "A-share first, H-share later" model, which is expected to account for 80% of new share sales in Hong Kong in 2025.
- Hong Kong's IPO fundraising in the first half of 2025 could reach $13 billion, with full-year projections up to $25 billion.
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Who’s Who
- Haitian Flavouring & Food Co.
- Haitian Flavouring & Food Co. is a Chinese condiment and sauce giant. They recently launched a HK$10 billion ($1.27 billion) H-share offering in Hong Kong, following an "A-share first, H-share later" listing model. This IPO, attracting significant international investment, marks a resurgence in Hong Kong's IPO market.
- Midea Group Co. Ltd.
- Midea Group Co. Ltd. is an appliance giant that successfully completed a dual listing in late 2024. Its listing, following the "A-share first, H-share later" model, helped restore market confidence in Hong Kong IPOs.
- SF Holding Co. Ltd.
- SF Holding Co. Ltd. (SF) is a courier company that successfully completed a dual listing in late 2024, following the "A-share first, H-share later" model. Its successful listing, along with Midea Group Co. Ltd., contributed to restoring market confidence in Hong Kong IPOs. This strategy is expected to account for roughly 80% of new share sales in 2025.
- Contemporary Amperex Technology Co. Ltd. (CATL)
- CATL, a battery giant, had a blockbuster IPO that attracted heavyweight cornerstone investors like the Kuwait Investment Authority. Its success helped restore market confidence in Hong Kong IPOs, signaling a return of international funds to the region.
- Jiangsu Hengrui Pharmaceuticals Co. Ltd.
- Jiangsu Hengrui Pharmaceuticals Co. Ltd. (as mentioned in the article as Jiangsu Hengrui Pharmaceuticals Co. Ltd.) is a company whose IPO attracted heavyweight cornerstone investors, including the Kuwait Investment Authority, UBS Singapore Asset Management, Oaktree Capital, and GIC.
- Goldman Sachs
- Goldman Sachs is a joint sponsor for Haitian Flavouring and Food Co.'s H-share offering. Wang Yajun, head of equity capital markets for Goldman Sachs Asia ex-Japan, projects a significant increase in Hong Kong IPO fundraising for the first half of 2025. He notes a strong return of international long-term funds to Hong Kong listings.
- Hillhouse Capital
- Hillhouse Capital recently participated as a cornerstone investor in the Hong Kong IPO of Chinese condiment and sauce giant Haitian Flavouring & Food Co. They subscribed for a portion of the HK$4.67 billion in shares secured by eight cornerstone investors, which accounted for nearly half of the offering.
- UBS
- UBS Singapore Asset Management and UBS Singapore were cornerstone investors in recent blockbuster IPOs and Haitian Flavoring's IPO, respectively. These investments indicate UBS's participation in large-scale Hong Kong listings, particularly in the resurgent market which has attracted international funds.
- Sequoia
- Sequoia is mentioned as one of the cornerstone investors in the IPO of Haitian Flavouring & Food Co. They subscribed to a portion of the HK$4.67 billion worth of shares from cornerstone investors, nearly half of the offering.
- China International Capital Corp. (CICC)
- China International Capital Corp. (CICC) is one of the joint sponsors for Haitian Flavouring & Food Co.'s H-share offering in Hong Kong. The offering aims to raise HK$10 billion ($1.27 billion) and is part of a broader resurgence in Hong Kong IPOs driven by increased global investor demand.
- Morgan Stanley
- Morgan Stanley is one of the joint sponsors for Haitian Flavouring & Food Co.'s HK$10 billion ($1.27 billion) H-share offering in Hong Kong.
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What Happened When
- 2020–2021：
- Period marked by a bull run and growth-chasing frenzy in Hong Kong IPO markets.
- 2022：
- Number of global investors in some Hong Kong IPOs was just a handful.
- 2023：
- Number of global investors in some Hong Kong IPOs remained low.
- 2023：
- Hong Kong Exchange slipped to sixth place globally in IPO markets, raising only HK$46.3 billion—its weakest performance in two decades.
- Late 2024：
- Dual listings of Midea Group Co. Ltd. and SF Holding Co. Ltd. in Hong Kong, following the 'A-share first, H-share later' model, began to restore market confidence.
- First half of 2025：
- Hong Kong IPO fundraising projected to reach $13 billion (HK$102 billion), already surpassing the full-year 2024 total.
- June 11, 2025：
- Haitian Flavouring & Food Co. launched its HK$10 billion ($1.27 billion) H-share IPO in Hong Kong.
- By June 12, 2025 9:43 a.m.：
- Margin financing applications for Haitian Flavoring's IPO reached HK$126 billion—218 times the public tranche.
AI generated, for reference only
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