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HeadlineHotpot chain Haidilao sees shares climb 10% in Hong Kong debut

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Hotpot chain Haidilao sees shares climb 10% in Hong Kong debut

Beijing-based international hotpot chain Haidilao saw its shares climb as much as 10% in early trade, as it made its debut in Hong Kong.

The firm’s retail shares were oversubscribed by more than five times, highlighting the intense interest from investors.

The restaurant is famous for offering free manicures and snacks while you wait up to two hours for a table.

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It is one of several high-profile debuts in Hong Kong this year. Haidilao’s shares, which were priced at 17.80 Hong Kong dollars ($2.27; £1.73) – the top end of the indicated range – opened at HK$18.80, and rose to as much as HK$19.56 in early trade.

However, by mid morning they had come back to HK$18.52.

Haidilao International Holding, the hotpot restaurant’s owner, is aiming to raise $HK7.3bn ($935m; £711m) via its listing, with some 60% of the proceeds already destined to finance part of its global expansion plan.

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The company has 363 restaurants in total – the bulk of which are on mainland China.

It operates 31 restaurants in Taiwan, and Hong Kong, and has international outlets in Singapore, South Korea, Japan and the US.

Research firm Frost and Sullivan has said it is the fastest-growing major Chinese cuisine restaurant brand on mainland China, and globally, with revenues jumping 36% between 2016 and 2017.

Despite the chain’s infamous waiting times, Haidilao reckons it still seats more than 100 million guests a year around the world.

Source: bbc

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