Company News
CMS (HK) Successfully Completed the Listing of Chongqing Hongjiu Fruit Co., Limited on HKEx

We are pleased to announce that on 5 September 2022, China Merchants Securities (HK) Co., Limited (“CMS (HK)”, a subsidiary of China Merchants Securities International Company Limited), acting as one of the Joint Bookrunners of Chongqing Hongjiu Fruit Co., Limited (“Hongjiu Fruit” or “the Company”, stock code: 6689.HK), successfully assisted the Company to commence trading of its shares on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”). A total of approximately 14.01 million H-shares (before the exercise of the over-allotment option) or 16.11 million H-shares (assuming the over-allotment option is fully exercised) are issued and offered under the Global Offering, at an offer price of HK$40.00 per share, raising a total of approximately HK$561 million (before the exercise of the over-allotment option) or HK$645 million (assuming the over-allotment option is fully exercised).

Despite the current volatile capital market and global economic conditions, Hongjiu Fruit resolutely pressed ahead with its IPO plan and successfully completed the offering in Hong Kong, becoming one of the few Mainland fruit-related giants listed in Hong Kong. As a Joint Bookrunner, CMS (HK) accompanied Hongjiu Fruit to overcome difficulties along the way and contributes to the successful listing with the trust and support from the Company. 

Leveraging our extensive project experience and in-depth understanding of the consumer sector, CMS (HK) assisted the Company to pinpoint its unique strengths as compared with its competitors, and to fully showcase its investment highlights to investors whose confidence was further boosted through our continuous and timely communication. By fully utilizing our integrated platform and valuable client resources, CMS (HK) selectively arranged top international and Chinese investors including long-only funds, private equity investors and multi-strategy funds to meet with the Company and thus enabled them to have a better understanding of Hongjiu Fruit’s business and operation. Furthermore, CMS (HK) has assisted the Company to gauge current market sentiment and formulate the most suitable price range by collecting diversified and detailed investor feedbacks. After extensive investor outreach and marketing work, CMS (HK) secured orders from high-quality investors during the bookbuilding process, and eventually completed the listing despite the current fluctuating market. The capital market has given positive response to Hongjiu Fruit’s IPO, in which two cornerstone investors subscribed for a total number of shares equivalent to USD26.0 million.      

About the Company
Hongjiu Fruit is a fast-growing and multi-brand fruit company in China with an end-to-end supply chain. It focuses on managing the entire supply chain for quality fruits primarily grown in China, Thailand and Vietnam. Capitalizing on its industry experience accumulated through nearly 20 years of operations, the Company established a product portfolio covering 49 fruit categories as of the Latest Practicable Date, among which durian, mangosteen, longan, dragon fruit, cherry and grapes are its core products. Through selecting and sourcing quality fruits grown from over 100 places of origin, together with direct procurement, standardized processing, and digitalized supply chain management, Hongjiu Fruit has built up a portfolio of self-owned fruit brands covering a variety of categories. Hongjiu Fruit was China’s largest durian distributor, as well as one of the top five distributors of dragon fruit, mangosteen and longan, by sales revenue in 2021.