Entrepreneur Zhong Shanshan’s rise to become China’s richest man on the back of his Nongfu Spring (9633.HK) bottled water empire awakened many to the huge potential of the country’s vast beverage market. Anyone doubting that need look no further than Coca Cola, Warren Buffett’s favorite stock, which has become an investor favorite on its wide stable of beverages, covering everything from soft drinks to healthier alternatives.
Another entrepreneur, Lin Muqin, may have sensed the market’s big potential when he entered a company formed more than three decades ago that would eventually become Eastroc Beverage (Group) Co. Ltd. (605499.SH), whose stock has more than quadrupled since listing in Shanghai in 2021. Now, the company is hoping to repeat that success by selling its shares to international investors in Hong Kong, touting its status as China’s leading functional beverage company. The deal could be quite large, reportedly raising $1 billion, according to media reports.
Soaring profits