Procter & Gamble – Blue Moon shares rise in HK after profitable float
Share costs of Chinese language mainland detergent maker Blue Moon Group Holdings Ltd, which raised practically HK$9.Eight billion ($1.2 billion) from an preliminary public providing on the Hong Kong stock exchange on Wednesday, rose by practically 13.07 %.
Blue Moon, which was backed by personal fairness group Hillhouse Capital, bought 747.1 million shares via its IPO. The corporate’s shares had been priced at HK$13.1 on the top-end of the IPO, indicating that the corporate would have raised practically HK$9.83 billion.
Shares of the Guangzhou-based agency opened for buying and selling at HK$15.3.After the itemizing, its shares had an intraday low of HK$14 and a excessive of HK$16, earlier than closing at $HK14.8.
Blue Moon makes laundry detergent, liquid cleaning soap and loo cleaners, in response to its prospectus. The corporate earned a internet revenue of HK$302 million in the course of the first six months of this 12 months, up practically 40 % on a yearly foundation.
The corporate plans to spend greater than half of the IPO proceeds on increase its gross sales and distribution networks and a 3rd of the cash raised in increasing its manufacturing capability, in response to its prospectus.
Jason Yu, basic supervisor of fast-moving shopper items analysis agency Kantar Worldpanel China, mentioned regardless of the COVID-19 pandemic, there was sturdy investor demand for shopper manufacturers corresponding to Nongfu Spring and Good Diary.
He mentioned anti-bacterial cleansing merchandise corresponding to Blue Moon noticed resurgent curiosity from buyers as a result of rising demand for such merchandise.
“Blue Moon has earned increased gross earnings than different new entrants largely as a consequence of its deeper market penetration, distribution channels in lower-tier cities and aggressive costs,” mentioned Yu.
Based in 1992, Blue Moon’s liquid laundry detergent, liquid cleaning soap and concentrated liquid laundry detergents had the largest market share of their respective sectors inside China between 2017 and 2019, in response to a report by analysis agency Frost & Sullivan.
The Blue Moon providing joins a latest surge of share gross sales in Hong Kong because the 12 months involves an in depth. JD Inc’s well being unit soared 56 % on its first day of buying and selling after elevating $3.5 billion in its preliminary public providing.
China’s No 2 smartphone maker Xiaomi Corp raised about $four billion from a mixed top-up placement and a convertible bond sale final week, Hong Kong’s largest such deal on file. Pop Mart Worldwide, a Beijing-based stylish toy maker, noticed its shares rise by as a lot as 100 % throughout its debut on Dec 12.
Blue Moon introduced in six cornerstone buyers for its IPO, together with BOCHK Asset Administration Ltd and Veritas Asset Administration, which have subscribed to about HK$1.Eight billion of the shares.
Nonetheless, the longer term progress of Blue Moon might be reliant on the continual growth and segmentation of its product portfolio via innovation and model constructing, if it needs to change into the Chinese language equal of Procter & Gamble, mentioned Yu.
Bloomberg contributed to this story.