On Tuesday, September 8, the Chinese bottled water giant Nongfu Spring
made a debut on the Hong Kong stock market. The company received a
spectacular response from investors with share price surging 85% in
early trading.To get more news about
Nongfu Spring, you can visit en.nongfuspring official website.
Nongfu Spring has been “one of the hottest” Initial Public Offering
(IPO) ever on the Hong Kong stock market. The IPO price for the stock
21.50 HKD allowing the company to raise $1.1 billion. Investors rushed
during the IPO period as the public offering was oversubscribed 1,148
times. During the opening hours on Tuesday, the stock opened at 39.80.
The company’s strong fundamentals and high-profit margins make it a
lucrative bet for investors. On the other hand, the timing for IPO
proved beneficial for Nongfu Spring. Since tech and internet stocks have
been already trading at high valuations, new investors were waiting for
new opportunities in the market.
During its IPO, Nongfu Spring sold over 388 million shares. Some of
its top investors include Singapore sovereign wealth fund GIC, hedge
fund Coatue, and fund manager Fidelity.
Zhong Shanshan, Nongfu Spring’s low-profile billionaire founder
currently controls 9.4 billion shares i.e. 84 percent of the company. He
owns a 17% direct stake in Nongfu while the rest 67% comes through his
wholly-owned subsidiary Yangshengtang.Nongfu Spring is one of the recent
examples of how investors are eager to pour their money in quality
stocks. apart from bottled water, Nongfu Spring also produces other
packaged drinks like coffee, tea, and fruit juices. The company has been
enjoying the largest share in China’s packaged drinking market over the
last seven years.
Last year in 2019, Nongfu Spring recorded revenue of 24.02 billion
yuan, surging over 17% from the previous year. However, during the first
half of 2020, its revenue sunk as a result of the COVID-19 outbreak.
The Wall