China-based sugar product maker Zhejiang Huakang Pharmaceutical has filed for a RMB1.5bn ($232m) initial public offering which will allow energy group HY Energy and confectionery manufacturer Yake Food to exit.
The company intends to issue approximately 29.1 million shares priced at RMB51.63 each on the Shanghai Stock Exchange, and Credit Suisse Founder Securities is lead underwriter for the offering.
Founded in 1962, Huakang produces corn and starch-derived sugars and polyols for the food additive industry. Coca-Cola, Ferrero Rocher, Mars, Mondelēz and Pepsi-Cola are among its customers.
The company will use the money raised in the IPO to ramp up its technology facilities, deploy a renewable energy source for its business and top up operating costs.
Chen Deshui, president of Huakang, will continue to be the largest shareholder in the company, with a 15.9% stake post-IPO, followed by Yake Food (6.1%), Hangzhou Tangchun (3.3%), Harmony Investment (Hemeng Haochi) (2.75%), Kaihua Tongli (2.2%) and HY Energy (1.7%).
HY Energy and Yake Food took part in a 2007 round of undisclosed size for the company alongside Yonghua Capital and Zhejiang Newline Media Investment, on behalf of investment firm Yongjin Group and media group Zhejiang Daily Media Holding Group respectively, according to Finance Sina.
Yonghua Capital and Zhejiang Newline Media Investment sold off their shares eight years later after an unsuccessful IPO attempt by Huakang. HY Energy returned to provide an undisclosed amount for the company in 2018, according to business data aggregator Tianyancha.
