This Chinese water company jumped 30% on its ASX debut

Gabriel Bouys/AFP/Getty Images

Tianmei Beverage Group Corp, a Chinese water and packaged goods company, which raised $10 million through an initial public offering in Australia, rose 30% on its ASX debut.

A short while ago shares in the company were trading at 22 cents after opening at 26 cents. The company issued 50 million new shares at 20 cents each. The benchmark S&P ASX/200 index was up 0.4%.

Tianmei plans to use part of the money raised in the IPO to buy a water plant and for research and development.

The company, based in China’s Guandong province, makes bottled water, including a collapsible water barrel that keeps out contaminated air. It sells packaged goods through 950 retail stores and supermarkets in China.

Tianmei has signed preliminary agreements with two Australian companies, a dairy producer and a food and beverage distributor, to sell their products in China, it said.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.