Edible Bird’s Nest Maker Yanzhiwu Weighing $200 Million Hong Kong IPO, Sources Say

Xiamen Yan Palace Bioengineering Co., a Chinese edible bird’s nest producer, is considering a Hong Kong initial public offering that could raise about $200 million, according to people familiar with the matter.

(Bloomberg) — Xiamen Yan Palace Bioengineering Co., a Chinese edible bird’s nest producer, is considering a Hong Kong initial public offering that could raise about $200 million, according to people familiar with the matter.

Endorsed by actress Zhao Liying, the company known as Yanzhiwu is working with China International Capital Corp. and GF Securities Co. to prepare for the first-time share sale, said the people, who asked not to be identified as the information is private. The IPO could take place as soon as the fourth quarter of this year, the people said. Yanzhiwu had previously applied for a Shanghai IPO but formally withdrew it last year.

Considerations are preliminary and details of the offering such as size and timing could change, the people said. A representative for CICC declined to comment, while spokespeople for GF Securities and Yanzhiwu didn’t immediately respond to requests for comment.

Edible bird’s nest has long been prized in China for its rarity, high protein content and flavor. Added to soup or eaten as a dessert, it is given as a gift for pregnant women or elders during the Lunar New Year. Counterfeiters have been drawn to the delicacy by its relatively high cost. A carton of 30 bowls of instant bird’s nest costs as much as 8,940 yuan ($1,296) according to the company’s official website. 

Founded in 1997, the company has enlisted China’s national fencing team and actresses Zhao, Lin Chi-ling and Carina Lau among its endorsers, the website shows. It has opened more than 700 stores in over 200 cities across China.

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