Snack maker Weilong to revive US$500m Hong Kong IPO

WEILONG Delicious Global Holdings has revived its Hong Kong initial public offering (IPO), paving the way for one of the city's biggest listings this year.

The Chinese snack maker refiled a preliminary prospectus on Monday (Jun 27) evening, confirming an earlier Bloomberg News report. The filing doesn't contain any offering details. The company could raise about US$500 million in a share sale, which it may launch in the second half, according to people familiar with the matter.

Discussions are ongoing and details of the IPO's size and timing could still change, the people said, who asked not to be identified as the information is private. A representative for Weilong declined to comment on the IPO details.

Founded in 2001, Weilong is most famous for its spicy stick snacks. The company's investors include Hillhouse and Tencent Holdings. The company first filed for a Hong Kong IPO, which could have raised as much as US$1 billion, in May 2021. It later joined a slew of companies, including Apple supplier Biel Crystal Manufactory. and China Tourism Group Duty Free, that shelved listing plans.

Inflation concerns and the war in Ukraine have slowed down Hong Kong's share sale activity significantly. Companies have raised about US$2.5 billion through IPOs so far this year, only a fraction of the US$28 billion raised during the same period in 2021, according to data compiled by Bloomberg. JL Mag Rare-Earth is the only firm that raised more than US$500 million in a Hong Kong listing this year.

Morgan Stanley, China International Capital and UBS Group are joint sponsors of Weilong's listing, according to the latest filing. BLOOMBERG