Shares of Thai coconut-water maker IFBH Ltd rose as much as 67 percent on their first day of trading in Hong Kong following a HK$1.16 billion ($148 million) initial public offering, the latest sign of renewed vigor in the special administrative region’s equity capital market.

The stock jumped to as high as HK$46.50 in early morning trading after it was priced at HK$27.80 per share, the high end of its marketed range. The deal attracted robust demand as it was 2,682 times oversubscribed, which was bolstered earlier by high margin financing from retail investors for the shares. Its cornerstone investors included UBS Asset Management and Black Dragon.

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The IPO will help the company’s ambition to expand its business in the Chinese mainland, where it says it already boasts a leading market share. It also adds to a growing list of companies listing in the Hong Kong SAR, whose IPO market has shaken off years of sluggishness to stage a strong comeback as investors move to diversify.

IFBH’s revenue rose 80 percent in 2024, primarily due to a sales increase in the Chinese mainland, according to its prospectus. The country accounts for more than 92 percent of its total sales, it said.

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The company’s 2024 sales growth outpaced that of some of its main competitors, including Vita Coco Co and Hainan Yedao Co, according Bloomberg-compiled data. Its rapid growth can be attributed its “light asset” model that calls for outsourcing production and packing to others, according to Banerjee.

Part of the IPO proceeds will be used to support its business in the Chinese mainland, where the ready-to-drink soft beverage market is expected to expand at a compounded annual growth rate of 7.1 percent by 2029, according to the company.

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The company also plans to expand to other regions, including Australia, the Americas and Southeast Asia.

Citic Securities was the sole sponsor for IFBH’s listing in Hong Kong.