On September 7, the Hong Kong Exchanges and the Clearing Limited disclosed the progress of the listing of Yangshengtang’s subsidiary company, Nongfu Spring. The company’s Hong Kong IPO priced at HK$21.50 (USD $2.77) per share, raising about HK$8.15 billion (USD $1.05 billion). Based on the current IPO pricing and the total number of shares issued by the company (about 11.2 billion shares), the current market capitalization of Nongfu Spring is about HK$240 billion (about RMB 210 billion yuan or USD $31 billion).
Nongfu Spring initially entered the drinking water field with the concept of “consumer health products”. Throughout the strategic layout of Yangshengtang Group, Nongfu Spring is in fact a typical case of actively entering the “Fast Moving Consumer Goods (FMCG)” track from the health field. This so-called FMCG trend of nutritional health food refers to the integration of mature major categories of products, such as protein powder, fish oil, dietary fiber, probiotics, and of course, health beverages, into consumers’ daily life and become typical low-value and high-frequency FMCG products. (Source: Shuzhengkangxun)