Hotpot chain to raise $129m in HK to increase outlets, improve logistics

Xiabuxiabu Catering Management Co, the iconic hotpot restaurant chain on the Chinese mainland, is seeking to raise about HK$1 billion ($129 million) on the Hong Kong stock exchange by offering 227.1 million shares for sale to the public at between HK$4.4 to HK$5 apiece.

Xiabuxiabu said it has offered its international underwriters an over-allotment option of 34 million additional shares. This option, when exercised, will boost the proceeds of the IPO as well as the company's market capitalization.

Xiabuxiabu's CEO Yang Shuling said her company has earmarked up to 74.4 percent of the net IPO proceeds to help fund the opening of an additional 453 restaurants throughout the mainland in the next four years. The company currently owns and operates 420 restaurants.