Will Nongfu Spring’s Hong Kong IPO lead to more success?

Sep 14, 2020

In the market's eagerly awaited, Nongfu Spring finally listed.

On September 8, Nongfu Spring was officially listed on the Hong Kong Stock Exchange at an opening price of HK$39.8, up 85% compared to the HK$21.5 IPO pricing. And its market cap reached HK$445.3 billion, which means that Mr Zhong, the founder of Nongfu Spring with 84% stakes, is now China's third-richest person.

Nongfu Spring is a hit with investors alike before its IPO. According to the results of the application, 1,148.3 times of subscriptions were received by Nongfu Spring at the open offer stage, a total of nearly 710,000 applications, with a first-share winning rate of 12%. Another record set by Nongfu Spring: Hong Kong investors will be temporarily locked in after paying subscription fees for new shares (i.e. "frozen capital"), and the IPO of Nongfu Spring has frozen a total of 677.7 billion yuan, making it the "frozen capital king" in the history of Hong Kong IPOs.