Eastroc Beverage targets $10.14b in Hong Kong IPO

BlackRock and Tencent back a massive capital raise to fund aggressive international supply chain growth.

Chinese energy drink maker Eastroc Beverage plans to raise $10.14b in a Hong Kong listing, with proceeds to be used to explore overseas expansion, branding, product development, and enhance capacity and supply chain.

According to the regulatory filing, the funds will also be used to attract talent, refine its organisational management and enhance its digitalisation capabilities.

The group is offering around 40.9 million in H shares for $248 a piece.

Cornerstone investors include BlackRock Funds, UBS Asset Management (Singapore) Ltd, Al-Rayyan Holding LLC, and Temasek-backed Taibai Investments Pte. Ltd, JPMorgan Asset Management (Asia Pacific) Limited, and Tencent.

Eastroc is the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021, according to Frost & Sullivan. It reportedly has a market share of 26.3% in 2024, and is the second largest functional beverage company in terms of retail sales in 2024, with a market share of 23%.