Sign Up

Haid Files For Hong Kong IPO Amid Growing Demand For Animal Protein

The company has filed for a Hong Kong IPO, positioning itself as a key beneficiary of growing demand for animal protein as global incomes rise

Image Credit: Bamboo Works

Key Takeaways:

Haid, a spinoff of Chinese agricultural giant Guangdong Haid Group, has filed for a Hong Kong IPO, backed by underwriting majors JPMorgan and CICC

The company sells all of its high-quality animal feed and related products outside China, insulating it from the economic slowdown in its home country

As appetites for meat and fish grow globally with rising incomes, companies that supply feed that forms the backbone of modern husbandry and aquaculture can be in pole position to fatten their bottom lines.

One such contender, Haid International Holdings Ltd., is looking to fatten its coffers with a Hong Kong listing, offering investors a technology-focused agricultural business with growing roots in some of the world's fastest-growing markets. The animal feed maker, which has been spun off from Chinese agricultural giant Guangdong Haid Group, made its IPO filing last week, boasting JPMorgan and CICC as underwriters. The hiring of such big-name dealmakers suggests that it's looking to raise a substantial amount from this share sale.

While Haid is among many companies seeking to capitalize on a renaissance for IPOs in Hong Kong, the company stands out from the crowd of nearly 400 current listing applicants for two reasons.

Firstly, Haid wants everyone to know it is all about technology, which sets it apart from conventional agricultural businesses and makes it a part of the fast-expanding agtech sector. The word "technology" appears 130 times in its 536-page IPO document, including in its stated mission of "empowering agriculture with technology."

Haid's core business doesn't necessarily sound very high-tech, centered primarily on producing feed for aquatic animals like shrimp and fish, as well as chickens and pigs. It offers those under an integrated "breeding-feed-animal health" model, with a goal of offering farmers a one-stop shop for everything from high-quality livestock to optimized feed and products for animal disease prevention. The interconnectedness of these products helps Haid ...