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.