Debut of soy sauce manufacturer based in China results in stock increase on Hong Kong market
VIBRANT HONG KONG: Soaring Soy Sauce Maker's IPO Amid 2025's IPO Boom
The rain didn't stop the celebratory air in Hong Kong on June 19, 2025. Shares for China's top soy sauce maker Foshan Haitian, a family workshop transformed into a major condiments powerhouse, soared in its debut, following a whopping US$1.3 billion IPO—one of the biggest this year. The listing came hot on the heels of other significant offerings, marking a resurgence of Hong Kong as a hub for stock market flotations.
Mere weeks ago, Chinese battery giant CATL and pharmaceutical firm Jiangsu Hengrui made triumphant entrances, boosting optimism about the city's recovery. Foshan Haitian's shares inflated as much as 4% in opening trade, before settling back near its HK$36.50 listing price—the higher end of its offering range. The stock finished the day up 0.55%, outshining the Hang Seng Index which dipped 2%.
Chairwoman Cheng Xue proudly dubbed the listing "another important milestone in Haitian's development history." Foshan Haitian was founded in 1955, in southern China's Guangdong province, and has claimed the title of China's largest condiments maker by volume for 28 years. Its IPO follows a 2014 listing in Shanghai.
Core investors for this offering, such as Hillhouse, GIC, and Royal Bank of Canada's Global Asset Management, agreed to buy shares worth US$595 million. The firm also exercised its option to issue additional shares, testifying to a robust market demand. Foshan Haitian intends to utilize the proceeds towards product development, capacity expansion, and exploration of overseas markets, specifically Southeast Asia and Europe.
2025 has seen a flurry of IPO activity in Hong Kong, with 40 listings raising HK$108.7 billion (roughly US$14 billion), signifying a monumental 711% increase compared to the same period in 2024. The region now accounts for about a third (33%) of global IPO proceeds in the first half of the year. Foshan Haitian's successful IPO has propelled the city as the leading global IPO venue, with about US$7.7 billion raised through 22 offerings so far in 2025.
A confluence of factors has fueled this resurgence. HKEX's strategic reforms including the FINI platform that reduced the IPO settlement cycle, and policy innovations like the Chapter 18C reforms and GEM board overhaul, have attracted companies, particularly high-growth and tech firms. Other factors include China’s economic reopening and geopolitical shifts, driving more mainland firms, including those seeking alternatives to U.S. listings, to list or dual list in Hong Kong.
The IPO boom in 2025 persists. Market experts anticipate Hong Kong IPO proceeds to exceed HK$200 billion. UBS predicts 20-30 mainland-listed companies will offer shares, ensuring the surge in dual listings continues. The Sectors dominating the IPO activity encompass technology, industrials, and materials, with a strong presence from automotive-related companies.
In summary, the Hong Kong IPO market in 2025 has experienced a robust revival with record proceeds largely due to mega IPOs, supportive regulatory reforms, and increased participation from mainland Chinese companies. This has solidified Hong Kong's position to lead the global IPO rankings in proceeds for the year.
- With the successful IPO of Foshan Haitian, a leading condiments maker from East Asia, Hong Kong has witnessed a surge in finance-related activities, confirming its standing as a thriving global IPO hub in 2025.
- As more mainland Chinese companies, like Foshan Haitian, seek to expand their horizons, particularly in Southeast Asia and Europe, predictions for Hong Kong IPO proceeds to exceed HK$200 billion are not far-fetched, affirming the city's robust standing in the global financial market.
