Hot pot chain Haidilao seeks ambitious US$10b valuation that towers over its peers

It’s aiming for a market cap greater than all Hong Kong-listed restaurant operators combined.

Bloomberg reports that Chinese hot pot chain Haidilao International Holding Ltd. is seeking a value of at least US$10b, a towering market cap greater than all of the 33 eatery companies traded in the Hong Kong bourse. 

Haidilao is offering 424.5 million shares priced at $14.80 to $17.80 apiece, according to deal terms. 

Such price range is said to value the hotpot chain at 25.1 times to 30.2 times estimated 2019 earnings, people with knowledge of the matter have said. 

The next restaurant operator with the second largest market cap after Haidilao’s ambitious target is Xiabuxiabu which has a valuation of US$1.6b followed by Cafe de Coral at US$1.4b.

Haidilao's share sale is the latest on a packed Hong Kong consumer IPO calendar over the coming months which includes online food delivery-to-ticketing services platform Meituan Dianping and Alibaba-backed online parenting firm Babytree Group. 

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