China Digest: ZJLD eyes up to $900m in HK IPO; Future Dao going public

ZJLD, a Chinese liquor company, is reportedly planning to raise up to $900 million in an IPO in Hong Kong while bitcoin miner Future Dao has agreed to merge with a Nasdaq-listed blank cheque company.

ZJLD said to target up $800-900m in HK IPO

Chinese liquor company ZJLD is planning to raise between $800 million and $900 million in what could be this year’s largest Hong Kong IPO, according to a Bloomberg report citing people familiar with the matter.

The report, however, said the details of the offering and the amount that the company seeks to raise could still change.

ZJLD filed for an IPO in Hong Kong in January but the documents were heavily redacted and the company did not specify financial details. It, however, said that IPO proceeds will be mainly used for capacity expansion, brand building, and marketing over the next five years.

Its prospectus also showed that the company’s revenue jumped 18% to 4.25 billion yuan (about $632 million) in the nine months that ended September 30.

The company claims to be China’s fourth-biggest private baijiu company by revenue. Its brands include Zhenjiu, Lidu, and Xiangjiao.

Future Dao to go public in US via SPAC merger

Bitcoin miner Future Dao has announced a business combination agreement with Nasdaq-listed special purpose acquisition company (SPAC) Metal Sky Star Acquisition Corporation, valuing the company at $350 million pre-transaction.

Future Dao shareholders will continue to hold a majority of outstanding shares and voting power of the combined company, following the closing of the deal. The transaction is expected to be completed later this year, subject to customary closing conditions and shareholder approvals.

Metal Sky Start Acquisition raised $100 million in an IPO last year. According to its filings, the blank cheque company intends to pursue a merger with a middle market-sized company in unspecified growth industries. The SPAC is sponsored by M-Star Management Corporation.

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