Blue Moon raises US$1.27bil in rush of mega IPOs

HONG KONG: Chinese detergent maker Blue Moon Group Holdings has become the latest in a record number of companies to raise at least US$1bil in a Hong Kong initial public offering (IPO) in 2020 after pricing its shares at HK$13.16, according to three sources with direct knowledge of the matter.

The price was at the top of the range flagged by the company when the deal launched last Friday and means Blue Moon will raise US$1.27bil.

The sources could not be identified as the information had not yet been made public.

Blue Moon declined to comment on the pricing of its shares.

There have been 15 IPOs and secondary listings in Hong Kong worth at least US$1bil this year, which is a record high, according to Refinitiv data.

Those mega deals have raised US$29.52bil, the highest level since 2010, the data showed.

Positive financial market sentiment coupled with unprecedented global liquidity is expected to result in a higher than usual number of equity capital market deals in December, according to bankers and advisors.

Blue Moon, backed by private equity group Hillhouse Capital, sold 747.1 million shares in the deal which gives the company a market capitalisation of almost US$10bil.

Hillhouse will exercise some of its anti-dilution subscription option to maintain its stake at 9.3%, the term sheet showed.

A further 112 million shares can be sold as part of a so-called greenshoe option within the next 30 days.

Six cornerstone investors led by Veritas Asset Management, the British investment fund, have taken a US$235mil stake in the deal that accounts for nearly 21% of the IPO, according to the term sheet. — Reuters