VC-backed Chinese snack maker targets $427m HK IPO

The company will sell 424 million shares at HK$5.8-7.8 apiece, according to a filing. Neither of the venture capital backers will sell shares in the offering.

Founded in 2002, Zhou Hei Ya is the second-largest braised foods producer in China. The company is famous for its spicy braised duck, but it also manufactures red meat, vegetable and poultry-based products. Zhou Hei Ya has 757 self-operated retail stores in 40 Chinese cities. It also has two processing facilities.

Revenue came to RMB2.43 billion ($360 million) last year, up from RMB1.8 billion in 2014, while its net profit jumped 23% year-on-year to reach RMB553 million in 2015.

Tiantu invested RMB58 million in Zhou Hei Ya in 2010. Two years later it particiated in a RMB150 million round alongside IDG. The Zhou family currently owns 77.69% of the company, while Tiantu and IDG hold 9.65% and 5.46%, respectively. They are subject to a six-month lockup period after the listing.

Sales volume for China's entire braised food industry increased from RMB23.2 billion in 2010 to RMB52.1 billion last year, according to Frost & Sullivan research cited by Zhou Hei Ya. The market is expected to be worth RMB123.5 billion by 2020.

Morgan Stanley and Credit Suisse are joint sponsors for Zhou Hei Ya's offering.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• IPO
• Consumer
• China
• Hong Kong (China)
• IDG Capital Partners
• Tiantu Capital
• Growth capital
• Exit