Haidilao International Holding Ltd, Chinese mainland's biggest hotpot restaurant chain, has set a price of HK$17.8 ($2.27) for its planned Hong Kong initial public offering on Sept 18, top end of the previous HK$14.8- HK$17.8 price range, reported wallstreetcn.com citing a Bloomberg source.
At the top end, the fundraising value could reach $963 million, making it the fifth-largest IPO in Hong Kong this year, after China Tower, Xiaomi, Meituan Dianping, and Ping An Good Doctor, according to a previous report of SCMP.
Haidilao is offering 424.5 million shares -- about 8 percent of its enlarged equity capital, according to deal terms.
The price range values the hotpot chain at 30.2 times estimated 2019 earnings, people with knowledge of the matter have said. That's more than the average multiple of 16 times for the four biggest restaurant operators trading in Hong Kong, said Bloomberg.
The Haidilao public offering, which is set to start trading on Sept 26, was heavily oversubscribed at around four-times with about 13,000 subscriptions, according to Hong Kong Economic Times.
