Thailand’s if Coconut Water Hong Kong IPO: Coconut Water Generates US$110 Million Annually

During the public offering phase, IFBH received approximately 2,682 times oversubscription. The issue price was set at HK$27.8 per share, with a board lot size of 200 shares. On its first trading day, the stock opened nearly 58% higher and at one point surged over 65% intraday. The company issued a total of 41.6668 million shares, evenly split between international and Hong Kong offerings, raising net proceeds of HK$1.074 billion. CITIC Securities served as the sole sponsor.

IFBH successfully secured 11 cornerstone investors

In this IPO, IFBH successfully secured 11 cornerstone investors, including UBS AM Singapore, Black Dragon, Enreal China Master Fund, Forreal China Value Fund, HCEP Master Fund, HCEP Long Only Master Fund, China Southern Fund Management, GF International, Harvest Oriental SP, ICBC Wealth Management, Jain Global Master Fund, Jane Street, and Mega Prime, with a total subscription amount of US$39.5 million.

Financial Performance of IFBH in the three years prior to listing (2022-2024)

In the three years prior to listing (2022–2024), IFBH demonstrated strong financial growth. Revenue from IFBH’s international operations increased significantly from US$44.5 million in 2022 by 96.3% to US$87.4 million in 2023, and further climbed by 80.3% to US$157.6 million in 2024. This growth was primarily driven by the successful penetration of if coconut water in the Chinese mainland market, where effective marketing campaigns fueled sales momentum. In 2024, revenue from mainland China accounted for 92.4% of total company revenue. The Hong Kong market also showed an upward trend, with revenue increasing from US$4.9 million in 2023 by 46.0% to US$7.2 million in 2024. Coconut water, as the company’s core product, contributed 95.6% of total revenue.

IFBH’s gross margin improved from 34.7% in 2023 to 36.7% in 2024, primarily due to the increased proportion of coconut water sales and favorable currency exchange movements. Net asset value rose from US$9.5 million as of December 31, 2023, to US$48.1 million as of December 31, 2024, mainly due to comprehensive income recorded during the year and the completion of Series B2 financing, partially offset by declared and paid dividends. Net current assets increased from US$3.1 million as of December 31, 2023, to US$38.9 million as of December 31, 2024, driven by increases in trade receivables, cash and cash equivalents, and a reduction in other payables. These were partially offset by decreases in other receivables and increases in trade payables and income tax payables.

IFBH Post-IPO Ownership and Control Structure

Regarding shareholding structure, after completion of the global offering (excluding any new shares potentially issued under the 2025 Share Incentive Plan), General Beverage will hold approximately 60.00% of the company’s issued shares. Mr. Pongsakorn Pongsak will hold approximately 65.51% of issued shares through both direct ownership and indirect ownership via General Beverage. As such, under the Listing Rules, General Beverage and Mr. Pongsakorn Pongsak are deemed controlling shareholders.

IFBH Strategic Use of IPO Proceeds Across Six Core Areas

Through its Hong Kong listing, IFBH plans to allocate the proceeds according to predetermined ratios across six key areas: 30% will be invested in strengthening the company’s warehousing and distribution capabilities to further improve logistics efficiency and support future sales growth; 22% will be used for brand-building activities; 13% will reinforce the company’s presence and penetration in the Chinese mainland market, as well as expand into Australia, the Americas, and Southeast Asia; 5% will enhance product development capabilities; 20% will be used for forming strategic alliances and conducting acquisitions in Asia, North America, or Australia to expand business scope and enhance market competitiveness; and 10% will be used as working capital and for other general corporate purposes.

The Background、Pros、Challenges of IFBH

IFBH is the world’s second-largest coconut water beverage company and continues to lead the markets in mainland China and Hong Kong. In 2024, the company held a market share of 34% in mainland China—seven times that of the second-largest competitor. In Hong Kong, it has maintained the top position for nine consecutive years with a 60% market share. The Greater China ready-to-drink soft beverage market presents significant growth potential. In 2024, the market’s retail value reached US$138.4 billion and is projected to grow at a compound annual growth rate (CAGR) of 7.1% to US$194.7 billion by 2029. Globally, the ready-to-drink soft beverage market was valued at US$1.1317 trillion in 2024 and is expected to grow at a CAGR of 6.1% to US$1.5194 trillion by 2029. As of the reporting period, IFBH offers 32 products, all centered around Thai-inspired flavors. The company adopts an asset-light operating model, enabling efficient operations through partnerships: (i) OEM manufacturers handle production; (ii) third-party logistics providers handle transportation; and (iii) third-party distributors are responsible for sales and distribution. This model provides IFBH with high flexibility in production and scalability, allowing it to swiftly respond to market changes, expand its global distribution network, and focus resources on premium product development and brand building.

Nonetheless, IFBH faces a range of market challenges, including (i) quality control capabilities across the entire supply chain; (ii) continued investment in marketing to boost brand visibility; (iii) securing the supply of raw materials, especially premium coconuts, given the company’s heavy reliance on if coconut water—any reduction in coconut supply could significantly impact its business, financial condition, and operational performance; (iv) potential competition from alternative health beverages; and (v) high dependence on key partners, with a small number of major distributors accounting for a large portion of the company’s revenue. Additionally, potential conflicts with General Beverage, a key business partner, remain to be adequately resolved.

Global Expansion and Brand-Driven Growth Strategy

Looking ahead, IFBH aims to strengthen its competitiveness by enhancing procurement capabilities and expanding production scale. Continued investment in product innovation will ensure the company meets evolving consumer demands, while aggressive expansion in international markets—including China, Australia, the Americas, and Southeast Asia—will drive further growth. The company also intends to reinforce brand equity and pursue strategic partnerships and acquisitions to accelerate business development and deepen market penetration, thereby solidifying its market leadership.