Stocks in a coconut-water drink producer jumped in its first day of trading in Hong Kong this week, proving that even in the face of a wider downturn in Chinese consumer spending, niche consumer brands still have the power to command attention and capital.
Thai coconut water company IFBH had its shares jump by up to 67% on its first day of trading on the Hong Kong Stock Exchange on Monday. This was at a time when some segments of the Chinese economy, such as luxury retail sales, were slowing down because of declining consumer confidence.
IFBH’s initial public offering was offered at HK$27.80 per share ($3.54). The stock surged immediately after the opening of the market to an intra-day high of HK$46.50 and ended at HK$39.50 on its listing day.
Sharemarket euphoria was palpable even before trading in shares started. The IPO was 2,682 times covered, indicating robust market faith in IFBH’s growth prospects and product alignment.
1. Growth In Spite Of Consumption Slowdown
The strong launch contrasted with universal worries over declining consumer spending. Although certain industries struggled, others, particularly in sport and health, continued to draw consumer attention, such as healthier beverage options like coconut water.
IFBH, with its ‘IF’ brand, dominates the coconut water industry in China for five years running. Baiguan research recently pointed to the strength of the brand, reflecting a profound market penetration.
In 2023, IFBH controlled a one-third market share of China’s coconut water market. Its popularity testifies to coconut water’s transformation from a niche sports beverage to an everyman item consumed in a wide variety of dining venues, including restaurants and cafés.
Jason Yu, Kantar Worldpanel’s managing director for Greater China, highlighted coconut water’s popularity among health-oriented shoppers seeking a hydrating drink without the excessive sugar content commonly associated with other beverages.
Coconut water is seen as healthy for hydration and sports purposes, but with not too much sugar,” Yu said. He also added its positioning as a healthier alternative to conventional sugary beverages.
Yu further stated that it also goes well with spicy and hot food, common in Chinese dishes.
2. Brand Strategy and Market Gap
Baiguan analyst Nina Chen pointed out IFBH’s popularity collaborations and incorporation of hot pop culture trends as being among its successes. She mentioned the power of Luckin Coffee’s coconut latte in raising product exposure and collaborations with pop culture favorites such as Labubu and celebrity influencers.
Chen cited IFBH’s capacity to capitalize on a market gap. “IF capitalized on a special market opportunity: strong Chinese demand for a product (coconut water) not easily manufactured domestically,” she said.
Chinese demand has been the linchpin of IFBH’s top line. The IPO prospectus cited $157.6 million in revenue for 2024, up 80% from last year.
Net profit also increased by 80%, to $33.3 million. This was comprised of 92% from mainland China, 5% from Hong Kong, and the balance from other areas, highlighting the significance of Greater China.
3. IPO Plans for Funding
IFBH intends to utilize IPO proceeds to drive the expansion of its business and increase product development according to shifting consumer preferences.
Investment will also go towards marketing to increase brand awareness and loyalty. Expansion into the Americas and Australia is a major component of its plan.
It plans to increase penetration in China and expand its distribution network to satisfy increasing demand. It also hopes to pursue acquisitions in Asia, North America, and Australia in order to diversify and expand further.
Funds will also be used for working capital and general corporate purposes.
Even in the face of competition, coconut water should still be on the rise. As Yu put it, the market is still in its infancy stage with much capacity for growth.
“Chinese consumers are more willing to pay for health and wellness,” Yu said, preferring natural, low-calorie beverages such as coconut water.
4. Corporate Structure and Manufacturing Model
Incorporated in Singapore, IFBH has production facilities in Thailand. Within two months, it had its IPO application granted, showing regulator confidence and high consumer affinity, said Shen Meng of Chanson Capital.
Though IPO numbers weren’t revealed in the June 15 hearing prospectus, post-listing activity hinted at strong investor appetite.
Spun off by Thailand’s General Beverage in December 2022, IFBH was established to oversee the If and Innococo brands internationally outside of Thailand. The company had a 7.5% share of the global coconut water market last year.
Yet, IFBH now subcontracts its production, causing worries over operational autonomy. The firm desires to lower dependence on General Beverages, its main supplier, from more than 70% to 50% by 2027.
5. Listing in Hong Kong: Strategic Decision
As the world’s second-largest coconut water brand by sales, IFBH chose Hong Kong for its IPO due to the city’s vibrant public offering scene and its proximity to China.
The firm had initially considered listing in Singapore but pivoted to Hong Kong in July 2024, citing stronger investment ties to mainland China.
A key driver is the Stock Connect scheme, facilitating cross-border investment access between Hong Kong and China. It makes it possible for mainland investors to purchase Hong Kong equities and foreign investors to gain exposure to Chinese equities, increasing liquidity.
On June 15, Hong Kong’s market size was US$6.33 trillion compared with Singapore’s US$483 billion. Hong Kong will also launch a yuan counter in Stock Connect’s southbound channel, further increasing access.
IFBH expressed its intention to continue having a deep concentration on China as it stretched further to Australia, the Americas, and Southeast Asia.
Market statistics supports IFBH’s local dominance, with it commanding 34% of China’s coconut water market and 60% in Hong Kong during the past year, providing a firm launching ground for international expansion.
Hong Kong’s IPO market has picked up. Through 22 listings, as of 2025, it has raised US$8.4 billion, ranking second in the world. Deloitte predicts 80 listings this year will raise US$19 billion.
Increased demand for Hong Kong IPOs is attributed to investor demand for China-exposed companies, particularly in the AI, life sciences, and consumer spaces.
Deloitte China’s Edward Au pointed out that more than half of the 150 IPO applications are from TMT and healthcare companies, indicating strong pipeline momentum.
Hong Kong is also becoming busier with Chinese investors seeking to diversify. Reasonably priced IPOs have kept demand intact.
A stronger currency has lured capital inflows, underpinning busy daily turnover (usually in excess of HK$200 billion) and driving average price-to-earnings multiples higher than 13.
The town has made reforms in place, such as streamlined biotech listings and narrower bid-ask spreads. Lower trading charges further improve market efficiency.
These efforts have further consolidated Hong Kong’s position as the world’s No. 2 IPO market in 2025.
Paul She of Forvis Mazars observed the rebound in the market. “As the Hang Seng Index recovers to around 22,000 points, investor sentiment is also improving.”
Lorraine Tan of Morningstar pointed out a pipeline of Chinese companies waiting in the wings, with interest peaking after the DeepSeek launch and a February dip in the U.S. market.
Conversely, the Singapore Exchange (SGX) is struggling to remain competitive. Analysts such as Tan note that Singapore has neither Hong Kong’s depth nor liquidity.
Ooi Chee Keong of Forvis Mazars concurred that SGX requires a broader investor base to bring in more IPOs, particularly because valuation multiples in Singapore tend to be lower than those in Hong Kong or Nasdaq.
Ooi recommended that SGX identify areas where Singapore enjoys a competitive advantage and strategize accordingly. He also stressed the need to promote local listings to encourage international participation.
Tay Hwee Ling of Deloitte Southeast Asia recognized continued regulatory moves to enhance SGX’s competitiveness and was positive about their eventual effect.
IFBH’s IPO success demonstrates how health-and-wellness-focused brands are able to do well even in difficult economic conditions. The firm’s success, driven by changing consumer behavior and a thoughtful market strategy, demonstrates how clever positioning is able to win over attention and capital.
Its Hong Kong listing highlights how well-timed decisions and regional synergies can create compelling business stories, especially when global markets increasingly reward innovative, health-forward consumer brands.
