Haidilao Raises $201 Million in Follow-on Offering in Hong Kong

The popular hotpot chain raised its first follow-on capital since 2018 IPO.

Author: Jennifer Chan   

Haidilao International Holding Ltd. (HKEX: 6862) raised $201 million in a follow-on offering in Hong Kong.

Two shareholders in Haidilao, SP NP Ltd. and LHY NP Ltd., headed by co-founders of the hotpot chain, sold off 47 million shares in the deal at HK$33.2 per share, according to the filing with the HKEX. Goldman Sachs (Asia) LLC secured the offering.

Upon the sale, Haidilao co-founders, Zhang Yong and his wife Shu Ping, will hold a cumulative 57.23% stake in the company.

The use of funds will be allocated for public welfare projects, as reported by Caixin Global citing a source.

One of China's most popular hotpot chains, Haidilao has been publicly traded since September 2018, when it raised nearly $1 billion, priced at top end of the expected range, HK$17.80 per share. At the time of IPO, its valuation of $12 billion was greater than all other Hong Kong-listed restaurants combined, according to Caixin Global.

These days, shares in the restaurant are traded at double the issue price.

For 2019, Haidilao reported 26.6 billion yuan in revenue, up 56% year-over-year. Net profit was 2.3 billion yuan, it said.

Haidilao had 768 locations globally as of December, including three in the United States. Other locations are in Hong Kong, Macao, Taiwan, Singapore, Vietnam, South Korea, Japan, the United Kingdom, Canada, and Australia.

Last year, Haidilao made some high-tech changes to a number of its restaurants.

In a March statement, the company said, "Robotic arm automatic serving room and direct supply of dishes from central kitchens are under smallscale testing and promotion. Intelligent soup bases preparation machines have been applied in some restaurants, allowing guests to taste personalized hot pot soup bases in Haidilao. We have introduced more than 1,000 robot waiters to enrich the dining experience of our guests. Kitchen cleaning equipment has been deployed in more than 500 Haidilao restaurants globally, making our employees' work easier and enabling them to better serve our guests."

In addition to delicious spicy hotpot, Haidilao offers free manicures to its guests and entertains them with noodle-spinning and games.