Blue Moon Raises $1.27 Billion From Hong Kong IPO

China based detergent manufacturer Blue Moon Group Holdings went public on the Hong Kong Stock Exchange market after pricing its shares at HK$13.16. This piece was at the top range of HK$10.20 to HK$13.16 issued by the company last week for the initial public offering.

In the IPO the company sold 747.1 million shares giving it a market capitalization of around $10 billion.

Nonetheless the company has a greenshoe option in which it can sell an additional 112 million shares within the next 30 days.

Several cornerstone investors led by Veritas Asset Management pumped in $235 million in the Blue Moon deal which represents around 21% of the IPO deal.

Blue Moons is intending to use proceeds from the IPO to improve its sales and distribution networks and also to increase its production capacity.

According to the financials of the company, Blue Moon’s net profit in the first half of 2020 was HK$302 million ($38.96 million) representing a 40% increase from what the company posted last year at a similar period.

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