China-based hotpot chain Sichuan Haidilao Catering is planning to raise $600 million to $700 million in a Hong Kong initial public offering in a push to take the brand global.
The planned listing comes as the Beijing-based restaurant operator looks to further expand at home and boost its network globally to attract foreign consumers to the nation’s hotpot cuisine. Part of the proceeds to be raised will be used to finance its expansion.
Betting on the growing lure of Chinese cuisine worldwide, several of Haidilao’s domestic rivals are also eyeing overseas expansion, including Little Sheep, another hotpot chain, controlled by Yum China Holdings and Best Food Holding, the catering and retail arm of private equity firm Hony Capital.
Yihai International Holding Ltd, a maker of hotpot soups and sauce condiments, was spun off from Haidilao and went public in Hong Kong in 2016. The unit, controlled by Zhang and another Haidilao co-founder, has a market capitalization of around HK$13.2 billion ($1.68 billion).