China’s biggest hotpot chain Haidilao taps Hillhouse, Morgan Stanley as cornerstone investors in up to US$963 million IPO
Haidilao’s IPO comes amid a sluggish stock market, as the Hang Seng Index enters a technical bear market on Monday
Haidilao, China’s biggest hotpot restaurant chain, has lined up US$375 million from five cornerstone investors including Hillhouse Capital and Morgan Stanley for its Hong Kong initial public offering, which is expected to raise as much as HK$7.57 billion (US$963 million).
The Beijing-based firm plans to issue 424.53 million shares at a price range between HK$14.8 and HK$17.8, according to a term sheet on the deal obtained by the South China Morning Post.
At the top end, the fundraising value could make it the fifth largest IPO this year, after China Tower, Xiaomi, Meituan Dianping, and Ping An Good Doctor.
The indicative range values the company between US$10 billion and US$12 billion.
Among the five cornerstone investors, Hillhouse Capital and Greenwoods Asset Management have committed US$90 million each. Morgan Stanley Asia and Morgan Stanley Investment will jointly take a stake worth US$80 million. Snow Lake Capital and Ward Ferry will invest US$80 million and US$35 million respectively.
The hotpot company, which is known for offering alternative services such as free manicures and shoe-polishing for customers waiting for a table, has expanded its operations rapidly to cater to a growing middle class population whose consumption is considered an integral part of China’s new-economy sector.
