Citic-Backed Chinese Beauty Chain Weighing Hong Kong IPO

(Bloomberg) -- Beauty Farm, a Chinese beauty salon chain, is considering an initial public offering in Hong Kong that could raise as much as $500 million, people with knowledge of the matter said.

The company is working with advisers on a potential first-time share sale, said the people. The listing could take place as soon as the second half of 2022, the people said, asking not to be identified as the information is private.

Beauty Farm’s investors include CPE, the Chinese private equity firm formerly known as Citic Private Equity. Deliberations are ongoing and details such as timing and fundraising size could change, the people said. Beauty Farm didn’t immediately respond to requests for comment.

An IPO would come as China’s consumer brands win market share from foreign rivals, offering investors a viable alternative to tech startups amid a crackdown on the biggest firms in that sector. Genki Forest, a Chinese beverage maker known for its flavored teas and sparkling water, is seeking to raise $500 million in fresh capital at a pre-investment valuation of $15 billion, Bloomberg News reported last month.

Founded in 1993, Beauty Farm offers skin health and facial aesthetics services at its beauty parlors, according to its website. The Shanghai-based company operates about 350 stores in roughly 120 cities in China, the website showed.

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