Chi Forest targets Hong Kong IPO; Temasek and Warburg Pincus lead

Chi Forest, the Beijing‑founded maker of low‑calorie sparkling waters, is holding early conversations about a possible listing in Hong Kong, people familiar with the matter said, as the company tests appetite for a public debut while continuing to expand overseas.

Those close to the discussions said the group has engaged potential advisers for preliminary work but has not locked in the timing or deal size. A company spokesperson told Inforcapital that Chi Forest currently has no confirmed IPO plan.

The beverage brand — which rebranded from Genki Forest — has moved quickly since its 2016 founding to build a portfolio that spans zero‑sugar sparkling waters, flavoured teas and energy drinks. It lists sales channels beyond mainland China in markets such as the United States, United Kingdom, France, Singapore, Japan and Australia, positioning itself as one of China’s most recognised non‑alcoholic drink challengers.

Backers of the group include private investors and state‑backed players. The company’s early private valuations were notable: sources say Chi Forest reached a valuation near US$15 billion at the end of 2021, after earlier funding that same year valued it at about US$6 billion and placed it well above its US$2 billion 2020 estimate. Investors named in public reporting include Warburg Pincus, Temasek Holdings and Cathay Capital.

If the company proceeds, its proposed float would follow a wave of beverage names testing Hong Kong’s public markets. Eastroc Beverage Group has been reported to probe investor demand for a Hong Kong listing, while tea‑chain IPOs such as Guming Holdings and Mixue Group listed last year and delivered sharp moves — Guming has risen roughly 188% since its February debut and Mixue about 115% since March — underscoring investor appetite for category leaders despite broader consumer headwinds in China.

Market strategists say the case for a Hong Kong IPO is straightforward: the exchange remains a primary exit route for large, China‑oriented consumer names and offers deep access to regional long‑only investors who understand local brands. At the same time, listing dynamics are competitive: consumer companies must demonstrate resilient margins, international growth traction and distinctiveness in a crowded non‑alcoholic beverage market.

For Chi Forest, the calculus will include how much capital it seeks, whether existing shareholders want partial liquidity, and whether investor demand is strong enough to support a premium valuation. The company’s overseas footprint gives it leverage with international investors, but questions remain about sustainable demand and margin compression as competition intensifies.

Any move toward listing will be closely watched by peers and private investors. A public offering in Hong Kong would mark another high‑profile test of investor enthusiasm for premium Chinese beverage brands and could set benchmarks for valuations across the sector.