KKR-backed Cofco Meat seeks up to $333 million in HK offering

Cofco Meat Holdings Ltd, the Chinese mainland pork producer part-owned by KKR & Co, is seeking to raise as much as $333 million in a Hong Kong initial public offering.

The State-backed company is offering 975.6 million shares at HK$2 (25 US cents) to HK$2.65 apiece, according to terms for the deal that were obtained by Bloomberg on Monday. Haier Group Corp agreed to buy $57.4 million of stock as the biggest cornerstone investor in the offering, the terms show.

Investors are returning to the Chinese food industry after a series of safety scandals that shook consumer confidence. Shares of WH Group Ltd, the Chinese mainland owner of the Smithfield bacon brand, have risen 56 percent in Hong Kong trading this year, outpacing the 5.2 percent gain in the city's benchmark Hang Seng Index.