IFBH raises HK$1.16 billion in successful Hong Kong IPO

Thailand is witnessing a substantial shift in its beverage industry, as IFBH, a company specializing in coconut water, makes headlines with its initial public offering (IPO) in Hong Kong. The IPO, which took place recently, was a resounding success, with shares skyrocketing by 42% on the first day of trading. This remarkable performance propelled founder Pongsakorn Pongsak into the ranks of Thailand's wealthiest individuals, highlighting the surge in investor interest in innovative beverage brands. IFBH's market debut raised HK$1.16 billion (approximately $145 million), marking a significant development in the company's growth trajectory. The company, which is known for its IF-branded bottled coconut water, managed to price its shares at HK$27.8 for the initial offering, subsequently rising to HK$39.5. This expected demand received support from a diverse group of cornerstone investors, including major players like Black Dragon, Jain Global, and Singaporean sovereign wealth fund Temasek. With a strong focus on marketing and research and development, IFBH is determined to innovate and expand its sourcing capabilities, aiming to boost brand sustainability. In 2024, IFBH generated impressive retail sales of $362 million, making it the largest coconut water producer in China, with the bulk of its revenue stemming from the mainland. As part of its business strategy, the company has maintained a lean operational model, with only 46 employees, enabling it to focus on its core competencies while outsourcing manufacturing and distribution. This business model has significantly contributed to its growth, with an 80% increase in sales year-over-year and nearly doubled net profits of $33.3 million. Pongsakorn Pongsak founded General Beverage in 2011 and launched the IF-branded coconut water two years later, expanding its operations to Hong Kong in 2015 and mainland China in 2017. The listing occurs amid a resurgence in Hong Kong's IPO market, with the city on track to once again become the leading venue for stock listings globally. The market dynamics are changing, with renewed investor interest driven by the performance of Chinese tech firms and geopolitical tensions influencing listing strategies among Chinese companies. The strong response to IFBH's IPO is indicative of this newfound momentum in the market.