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Hefu ladles up lower prices to soak up more business ahead of IPO

The company is one of two Mainland noodle chains reportedly planning IPOs to collectively raise up to $300 million, as the catering sector bounces back post-pandemic

This article only represents the author's own views.

A noodle war is coming to Hong Kong, as two of China’s largest chains reportedly prepare to serve up their stock to growth-hungry investors. The larger of the listings would see Jiangsu Hefu Catering Management Co. Ltd. make an IPO as early as this year, aiming to raise $100 million to $200 million, according to financial publication IFR. Joining it in the listing race is Guangzhou Yujian Xiaomian Catering Co. Ltd., which is also reportedly planning to raise $100 million.

Before word of its IPO plan leaked out this month, Hefu made headlines in Hong Kong when it took over part of a high-profile storefront that was previously luxury brand Prada’s flagship store in the city’s popular Causeway Bay shopping district. That move drew extensive local media coverage, hinting at Hefu’s upcoming IPO by drumming up interest in the chain in the financial hub where it will list.

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