(Yicai) June 17 -- IFBH’s application for an initial public offering has been approved by the Hong Kong Stock Exchange just two months after filing, paving the way for the world’s second-largest coconut water bottler to further consolidate its market lead in the Chinese mainland and step up its international expansion.

IFBH did not disclose how much the Singapore-based company aims to raise from the offering nor the share price in the post‑listing hearing prospectus published on June 15.

Spun off from Thailand’s General Beverage in December 2022 to operate the If and Innococo brands outside of the Southeast Asian country, IFBH had a 7.5 percent share of the global market and a 34 percent share of the Chinese market last year, according to the prospectus.

Although IFBH operates a fully outsourced manufacturing model, which poses potential operational independence risks, the swift approval of its IPO filing may reflect the brand’s strong resonance with younger consumers, Shen Meng, executive director at Chanson Capital, told Yicai.

With health consciousness on the increase among Chinese consumers after the Covid-19 pandemic, coconut water beverages with their natural ingredients and low calories have become very popular. According to an estimate by IFBH, China’s coconut water market will more than double in size to USD2.7 billion in 2029 from USD1.1 billion last year.

IFBH said it will use the IPO proceeds to upgrade its fulfillment network, deepen its market penetration in China, expand into Australia, the Americas, and Southeast Asia, enhance product development and brand building, pursue strategic partnerships and acquisitions across Asia, North America, and Australia, and fund its working capital and other corporate needs.

IFBH’s net profit surged 80 percent last year to USD33.3 million on a near-doubling of revenue to USD157.6 million. Ninety-two percent of its income came from the Chinese mainland, 5 percent from Hong Kong, and the rest from other markets.

The company also plans to reduce its dependence on General Beverages, its main raw material supplier, contract manufacturer, and controlling shareholder, aiming to lower the share of coconut water raw ingredients supplied by the company to less than 70 percent by the end of the year and to half by 2027, per its prospectus. 

Editors: Dou Shicong, Futura Costaglione