Eastroc Beverage began trading in Hong Kong on Tuesday with its shares opening at HK$248, equal to the offer price set for its initial public offering. At that level, the company's market capitalisation stands at approximately HK$166.39 billion.
The company raised HK$10.14 billion, or about $1.3 billion, from the share sale. By size, that makes the listing the second-largest offering in Hong Kong so far this year. The largest offering this year is from China’s largest pig breeder, Muyuan Foods (SZ:002714), which is seeking to raise $1.4 billion and is scheduled to debut on Friday.
Eastroc, which already maintains a listing on the Shanghai exchange (SS:605499), placed 40.9 million shares at the top of its marketed price range. The company's allotment results, released on Monday, show brisk demand: the retail portion of the offering was oversubscribed by 57.46 times, while the international tranche was oversubscribed by 15.60 times.
According to the prospectus, the funds raised through the Hong Kong offering will be directed toward several strategic priorities. These include increasing production capacity, upgrading the company’s supply chain infrastructure, investing in brand-building activities, pursuing growth in overseas markets, and reserving capital for potential investments and acquisitions.
Market participants noted the strong subscription metrics in the offering, reflecting investor interest in the company’s growth plans and the consumer beverage sector. The flat opening price indicates that the market initially accepted the deal at the marketed valuation.
As a cross-listed issuer with shares on the Shanghai exchange and a new listing in Hong Kong, Eastroc now has broader access to capital across Chinese markets. The company’s stated use of proceeds emphasizes operational expansion and strategic flexibility through potential acquisitions, though the ultimate impact of those initiatives will depend on management’s execution.
Investors and market observers will likely watch how the company deploys the raised capital and whether the listing supports its stated expansion objectives.