According to various reports, Shenzhen Pagoda Orchard Industrial Development Co. Ltd, commonly known as Pagoda, is planning its listing on the China National Stock Exchange. The company has already signed on with Minsheng Securities as the advisory body for the IPO and registered this at the Shenzhen Securities Regulatory Office on November 10 this year.
This also means that 19 years after its inception, Pagoda is about to become China's first publicly traded fruit chain. In April of this year, Pagoda already underwent a shareholding reform, converting from a limited liability company into a corporation. On June 1, Pagoda submitted its application to the international division of the China Securities Regulatory Commission with the intent of being listed on the Main Board of the Hong Kong Stock Exchange, and the commission granted its approval on September 10. The latest reports indicate that Pagoda has now changed its plans and intends to be listed on the China National Stock Exchange.
Plans for Pagoda's IPO have been in the pipeline since 2015. In September 2015, Pagoda secured its first outside investments with major co-investors, including Tiantu Capital and Guangfa Xinde, which collectively contributed 400 million yuan in the Series A funding round. That same year, Tiantu Capital developed a clear schedule to list Pagoda, and Tiantu's chief investment officer, Feng Weidong, stated that Pagoda was expected to go public within three to five years.
In 2015, Pagoda also acquired Beijing's largest fruit retail chain, Guoduomei. According to available data, Pagoda obtained eight more rounds of equity financing and strategic financing between 2015 and 2020, raising 1.5 billion yuan in the Series B round of financing. According to industry sources, if Pagoda is listed on the China Stock Exchange, it will likely be valued at about 60 billion yuan.
In an interview with Securities Daily in October 2019, Pagoda CEO Xu Yanlin stated that the company planned to go public, adding that the ultimate goal was to improve the industry with the capital that would be brought in. This was the first time that Pagoda management openly stated their position on the IPO plans since the company was established, revealing their determination to list the company.
Meanwhile, several other Chinese fruit retailers have also increased their efforts to go public, such as Xianfeng Fruit, which is the second-largest fruit retailer in China after Pagoda, or Hongjiu Fruit.
Source: producereport.com / simfruit.cl
