Chinese snack maker Dali Foods to launch up to $1.3 bln HK IPO Wed: IFR

Dali Foods Group Company Ltd, one of China’s biggest snacks makers, is set to launch an up to $1.3 billion initial public offering in Hong Kong on Wednesday, IFR reported citing people familiar with the plans.

Dali Foods is offering 1.7 billion shares at an indicative price range of HK$5.00 to HK$6.15 each, said IFR, a Thomson Reuters publication. The range is equivalent to a forecast price-to-earnings ratio of 16 to 20 times for 2016.

Pricing for the IPO is slated for Nov. 13, IFR said.

Dali Food executives were not immediately available to comment.

The company is controlled by the family of its Chairman Xu Shihui, with private equity firm CDH Investments holding a 3 percent stake, according to its preliminary prospectus.

Bank of America Merrill Lynch and Morgan Stanley were hired as sponsors of the IPO.