A New Flavor in the Market – Foshan Haitian’s Bold Hong Kong Move
Foshan Haitian Flavoring & Food, the undisputed leader in China’s condiment landscape, is now stirring the pot with plans for a dual listing in Hong Kong. The company, known for its extensive portfolio of soy sauces, pastes, and cooking wines, aims to raise up to HK$1.5 billion (around US$193 million) in funding. This money isn’t just about bolstering profits—it’s about going global, enhancing brand recognition, and solidifying its international competitiveness. In a strategic nod to the ambitions laid out by Vice-Premier He Lifeng, Foshan Haitian hopes to join the growing ranks of Chinese companies taking the plunge onto the Hong Kong stock exchange.
Foshan Haitian stands as a formidable force in China’s condiment market, boasting a valuation of 269 billion yuan (US$37 billion). Its size eclipses its closest competitor, Jonjee Hi-Tech, by a significant margin. In fact, its market capitalisation is almost on par with Kraft Heinz, the American giant known for everything from sauces to dairy. The company’s product range is nothing short of vast, stretching across soy sauce, vinegar, fermented bean curd, and even chicken extract. Now, with a dual listing in sight, it’s positioning itself to expand its footprint beyond China’s borders, setting its sights on global markets and international brand dominance.
While this expansion promises potential growth, regulatory hurdles still remain. Foshan Haitian must secure approvals from both the China Securities Regulatory Commission and Hong Kong’s Securities and Futures Commission before the listing can move forward. But the company is riding a larger trend: more Chinese firms are eyeing Hong Kong as a launchpad for international growth. Experts like EY and KPMG foresee a more robust listing market by 2025, buoyed by increasing investor confidence and a rebounding IPO landscape. Despite a challenging 2023 for the Hong Kong market, with a significant drop in fundraising volumes, the city’s exchange appears poised for a new era of activity and global expansion.
(Source: BNN Bloomberg | SCMP)
