LXJ International, which operates the largest fast-food chain in mainland China, is seeking a stock listing in Hong Kong to raise funds for expansion, after two unsuccessful attempts to float its shares in Shanghai last year.
The chain, known as Lao Xiang Ji or Home Original Chicken, submitted its application to the Hong Kong stock exchange on Friday, without disclosing the size of its offering. The funds will be used to enhance its supply chain, expand its restaurant network and improve technologies, among other purposes.
The company had proposed to raise 1.2 billion yuan (US$164 million) in its previous applications to the Shanghai Stock Exchange, before withdrawing its submission in August.
Hong Kong’s IPO market enjoyed a revival last year, after Beijing introduced a series of stimulus measures in late September, triggering a world-beating rally in Chinese stocks. Chinese home appliances giant Midea Group completed its US$4.6 billion IPO in that month, the world’s second largest deal in 2024.
Hong Kong’s stock exchange hosted 71 new listings last year that helped raise 89 per cent more proceeds to HK$87.5 billion from a year earlier. It lifted the city to fourth among the busiest IPO venues globally.
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