Shanghai-based Fu Ji Food hopes a Hong Kong launch will help it expand its operations beyond the Yangtze delta
Shanghai-based Fu Ji Food and Catering Services Holdings plans to raise more than $300 million through a Hong Kong listing in the middle of next month, taking advantage of a liquidity surge in the domestic market.
Fu Ji Food chairman Wei Dong said his company had no plans to extend its business outside the mainland in the near future but a listing on the Hong Kong main board would raise brand recognition and help attract new international clients.
Mr Wei declined to disclose the flotation's size but a source close to the firm said it was likely to raise more than $300 million. The deal is sponsored by CAF Securities.
Fu Ji Food serves more than 50 clients, including international firms such as Panasonic, Hi-P, BenQ Corp and Amkor Technologies. It also feeds the Shanghai Public Security Bureau.
Established in 2000, Fu Ji Food started as a restaurant-operator in Suzhou and branched into catering services by providing meals for workers in Shanghai in the following year.
Last year, the company further expanded its business to convenience-food products under the 'Home Kitchen' brand.