ZCZC
BCN-34
ECONOMY-CHINA-HOTPOT
Chinese hotpot chain Haidilao eyes nearly $1bn IPO
BEIJING, Sept 13, 2018 (BSS/AFP) – China’s premier hotpot chain Haidilao
International is hoping to raise almost $1 billion in an initial public
offering in Hong Kong, according to an prospectus made public Wednesday.
The Sichuan hotpot operator is known for its good customer service — a
rarity in China — with queuing diners provided with snacks, tea, and even
manicures.
The legion of customers also enjoy live shows during their meals put on by
Haidilao staff. For those who do not finish their meals, they can return
uneaten meat.
Haidilao aims to sell 424.5 million shares for between HK$14.80 and
HK$17.80 each, which could raise as much as $963 million.
But it could face headwinds as Hong Kong’s stock market struggles — it
fell into a bear market on Tuesday after dropping more than 20 percent from
its record high set in January.
The restaurant operator said it would use proceeds from the offering to
push its global expansion, repay loans and improve food safety-related
technology.
The chain has had problems in the area before, with a Beijing outlet under
fire last year over allegations of a rat-infested kitchen and dirty dishes.
Zhang Yong, 47, founded the chain in 1994 after years working in a tractor
factory in southwest Sichuan province. Zhang earned 14 million yuan ($2
million) stewarding the company last year, the prospectus shows.
The chain has kept to its roots and boiling chili pepper-laden water to
cook the frozen meat remains a fan favourite.
It has expanded rapidly, adding more than 30 restaurants per year since
2015.
Revenue has also jumped, with its 341 restaurants earning 647 million yuan
on sales of 7.3 billion yuan for the six months ending in June.
The company is expected to price its IPO on Tuesday with trading to start
on September 26.
BSS/AFP/HR/1040