Clifford Chance, Jingtian & Gongcheng, Paul Hastings and Jia Yuan Law Offices assisted parties involved in Foshan Haitian Flavouring and Food raising HKD10.1 billion (USD1.39 billion) from its debut, making it the second largest IPO on the main board of the HKEX this year.
China’s largest condiment maker sold 279 million H shares at HKD36.3 each.
This IPO is among the trend of A-share companies seeking secondary listings in Hong Kong. Haitian became the first company in the condiment industry to achieve dual listings in both the A-share and H-share markets.
Clifford Chance counselled Haitian on Hong Kong and US law, with partners Tim Wang, Jean Thio and Xiang Tianning leading the team. Jingtian & Gongcheng advised on PRC law.
Paul Hastings acted for the 15 underwriters, including CICC, Goldman Sachs and Morgan Stanley, on Hong Kong and US law. The firm’s chair of Greater China Raymond Li and partners Fan Chaobo, Steven Hsu and Crystal Liu led the team. San Francisco-based partner David Hearth advised on matters involving US federal law, the Investment Company Act of 1940.
Jia Yuan’s senior partner Zhang Wen and Liu Xing advised the underwriters on PRC law.
As a leading enterprise in China’s condiment industry, Haitian’s main products include soy and oyster sauces. With a revenue of RMB26.9 billion (USD3.7 billion) last year, Haitian had the highest annual revenue in the mainland’s condiment market.
The company recorded a net profit of RMB5.64 billion in 2023 and attributed the 9% year-on-year decline on investments in production facilities. But its profit picked up by 12.6% in 2024, reaching RMB6.36 billion, as raw material prices decreased and technologies in production and logistics lines were upgraded.
