Chinese liquor producer China Kweichow Moutai Distillery Group has said it plans three initial public offerings of its businesses by 2020, according to a report from Bloomberg.
The group’s chairman Yuan Renguo told Bloomberg it plans to list its e-commerce business, its agricultural arm and a business selling its mid-tier liquor Xijiu.
The company’s listed unit, Kweichow Moutai, overtook Diageo as the world’s largest liquor company by market capitalisation earlier this year. Its share price has jumped 98 per cent for the year to date.
However, this surge has drawn criticism and a rare warning from state news organisation Xinhua, which last month called on investors to rationally examine the company’s rocketing share price. The grain liquor, often consumed at official banquets, has regained popularity over the past two years after sales dropped following the launch of President Xi Jinping’s anti-corruption drive. Sales of Xijiu, which shares part of its name with Mr Xi, have surged since he was installed as China’s leader five years ago.
Kweichow Moutai shares were down 0.6 per cent in Shanghai on Friday, in line with a 0.7 per cent fall for the benchmark Shanghai Composite.
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