(Bloomberg) -- Foshan Haitian Flavouring & Food Co., one of the biggest condiment makers in China, is considering a second listing in Hong Kong that could raise at least $1.5 billion, people familiar with the situation said.
The Guangdong-based company is in talks with advisers on a potential share sale in the Asian financial hub and a listing could happen in the first half of next year, the people said. Haitian’s Shanghai-listed shares have risen almost 20% this year, giving the company a market value of about $35 billion.
Deliberations are ongoing and the fundraising size will depend on market conditions, said the people, who asked not to be identified as the information is private. A representative for Haitian didn’t immediately respond to a request for comment.
Hong Kong is seeing a return of sizable listings, with Beijing’s economic stimulus fueling a stock-market rally. About $7.3 billion has been raised through first-time share sales in the city this year, more than double the $3.5 billion in the same period in 2023, according to data compiled by Bloomberg.
Haitian could be joining Chinese firms such as Midea Group Co. in pursuing a second listing in Hong Kong. The Chinese appliance maker, which is also based in Fosan and already listed in Shenzhen, raised $4 billion in its Hong Kong listing last month, spurring optimism that the worst of the city’s capital market slump is coming to an end. Midea’s Hong Kong shares have soared 45%.
Founded in 1955, Haitian is one of most recognizable staple brands in Chinese households. Its products range from soy sauce and cooking oil to vinegar and fermented bean curds, according to its website. In recent years, the company has expanded into making hotpot sauce, lemon tea and ice cream.
Haitian is trading at a price-to-earnings multiple of 41 times in Shanghai, far higher than even Kweichow Moutai Co.’s 24 times.
--With assistance from Dong Cao.
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