Chinese soda maker Dayao plans Hong Kong IPO to raise up to US$500 million

Chinese soda maker Dayao is gearing up for a Hong Kong initial public offering (IPO) as early as the second half of the year, people familiar with the matter said, building on the city’s emerging recovery in new listings.

The company, based in China’s Inner Mongolia autonomous region, is working with advisers as it seeks to raise as much as US$500 million, the people said, asking not to be identified as they were not authorised to speak publicly. Deliberations are ongoing, and the size and timing of the deal could change, the people said.

Dayao did not respond to a request for comment.

Founded in the 1980s, Dayao counts carbonated beverages, juices and protein drinks among its products. It has seven major production bases including those in China, according to its website. Dayao also exports to places including Russia and Southeast Asia.

Deal makers are expecting a better year for Hong Kong IPOs, largely helped by second listings of companies whose shares are already traded in China.

Hong Kong listings, including those of China-listed firms, raised more than US$11 billion in 2024, nearly doubling from the year before, according to data compiled by Bloomberg. IPO volumes averaged nearly US$30 billion in the 10 years before 2020, when the Covid-19 pandemic hit.