IFBH, the world’s second-largest producer of coconut water by sales, moved closer to listing its shares in Hong Kong as it bets on the city’s robust initial public offering (IPO) market and proximity to mainland China to fuel its global expansion.
On Sunday, the Thai drink maker cleared a major regulatory hurdle with the publication of its Post Hearing Information Pack by the Hong Kong stock exchange.
IFBH had planned to list in Singapore, where it is incorporated, but withdrew its IPO plans in July 2024, citing a desire to “focus its resources on the [Hong Kong] stock exchange” and take advantage of the city’s strong investment connectivity with mainland China.
One key link is the Stock Connect programme, a conduit through which international investors can access China’s onshore stock market, while their counterparts on the mainland trade Hong Kong-listed equities. On Friday, Julia Leung Fung-yee, CEO of the Securities and Futures Commission, said financial authorities planned by the end of the year to include a yuan counter in the southbound channel of the Stock Connect, allowing mainland investors to buy and sell Hong Kong stocks with the Chinese currency.
“We aim to solidify our market penetration and presence in China, while extending our reach into Australia, the Americas and Southeast Asia,” IFBH said.
Last year, the company commanded a 34 per cent share of the coconut-water market in mainland China as well as a 60 per cent share in Hong Kong.
