General Atlantic-Backed Xiabuxiabu To Raise $140M In HK IPO

Beijing-based Chinese hotpot restaurant chain Xiabuxiabu Catering Management (China) Holdings Co. Ltd., backed by global growth equity firm General Atlantic, has disclosed that it plans to offer 227.1 million shares at HK$4.4 to HK$5 apiece to raise as much as HK$1.1 billion (US$140 million) in an IPO on the Hong Kong Stock Exchange, according to a regulatory filing.

The company’s shares are expected to begin trading on December 17 under stock code "520″.

Earlier this year, it was reported that Xiaobuxiabu was planning a US$300 million IPO.

In 2012, General Atlantic acquired a majority stake of Xiabuxiabu from emerging markets private equity specialist Actis Capital for an undisclosed amount.

In 2008, Actis Capital acquired a stake in Xiabuxiabu for US$51 million.

Hotpot leisure dinning is a fast-growing market segment in China. It is expected to grow at a compound annual growth rate of around 25% to reach RMB12 billion (US$1.96 billion) in 2018, according to data from Frost & Sullivan.

Founded in 1998, Xiabuxiabu currently operates close to 400 bar-style hotpot restaurants across 20 major Chinese cities.

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