Shares of Thailand’s coconut water producer IFBH, an Innovative Fruit juice brand, soared as much as 67% during their Hong Kong trading debut, after a successful HK$1.16 billion initial public offering (IPO) priced at HK$27.80 per share.
The stock began trading on a robust note, jumping to HK$46.50 in early activity, well above its IPO price. Interest during the IPO launch was overwhelming, with the offer oversubscribed by a remarkable 2,682 times. An influx of margin financing from retail investors further buoyed the response. Among those anchoring the IPO as cornerstone investors were UBS Asset Management and Black Dragon.
IFBH aims to use funds from the listing to scale up its presence in China, where it claims to already dominate in terms of market share. The firm’s public listing comes amid a resurgence in Hong Kong’s IPO activity, marking a shift as companies and investors return to the city’s capital markets after several stagnant years.
According to IFBH’s prospectus, 2024 saw the company’s revenue climb by 80%, thanks largely to surging sales in mainland China, which now accounts for over 92% of its revenues.
The company projects that by 2029, the country’s ready-to-drink soft beverage market will expand at a compound annual growth rate of 7.1%, creating fertile ground for its continued expansion.