Temasek-backed fizzy drinks maker Chi Forest considers Hong Kong IPO: sources

[HONG KONG] Chi Forest, a maker of low-calorie sparkling drinks and flavoured teas, is considering a Hong Kong initial public offering, people familiar with the matter said, following in the footsteps of other Chinese beverage companies.

The drinks manufacturer, formerly known as Genki Forest, has held early talks with potential advisers about the share sale, according to the people, who asked not to be identified because the discussions are private.

Deliberations are preliminary and details such as the size and timing of the IPO have not been decided, the people said. A representative for Chi Forest said the company doesn’t have an IPO plan at present.

Chi Forest’s valuation reached US$15 billion at the end of 2021, people familiar with the matter, as well as local media, said at the time. Earlier that year, Chi Forest said a funding round had given it a US$6 billion valuation, up from US$2 billion in 2020.

Founded in Beijing in 2016, Chi Forest is backed by investors including Warburg Pincus, Singapore’s Temasek Holdings and Cathay Capital.

If it does proceed with an IPO, Chi Forest would join several other Chinese beverage companies listing in Hong Kong, where investors have shown appetite for sector leaders despite sluggish consumption and competition in China.

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Energy drink company Eastroc Beverage Group is gauging investor demand for a Hong Kong listing, and tea chains including Guming Holdings and Mixue Group made their debuts last year and rapidly rose. Guming has climbed 188 per cent since February and Mixue is up 115 per cent since March.

Chi Forest makes flavoured, zero-sugar sparkling waters as well as energy drinks and teas. Aside from China, the company sells its products in countries including the US, UK, France, Singapore, Japan and Australia. BLOOMBERG