[IPO Watch] A Hot Pick? Qiyunshan Food (02797.HK) Surges 92% in Grey Market

Qiyunshan Food<$QIYUNSHAN FOOD (02797.HK)$> will officially list on the Hong Kong Stock Exchange on July 9. After-hours grey market trading on July 8 saw intense demand, with the grey market price reaching HK$15.36 as of this report—up approximately 92% from the top end of the IPO price range at HK$8. Each board lot consists of 500 shares, and excluding transaction fees, investors stand to gain an unrealized profit of roughly HK$3,680 per lot, making this IPO subscription highly rewarding.

The company is offering 25 million H-shares globally in this offering, with 10% allocated to the Hong Kong public offering and 90% to the international offering. The indicative price range is HK$5.00 to HK$8.00 per share. Based on the midpoint offer price of HK$6.50, the company expects net proceeds of approximately HK$130 million.

The net proceeds from this offering will primarily be used to expand production and storage facilities, enhance research and development capabilities, develop e-commerce infrastructure and online marketing, extend offline sales and distribution networks in both existing and untapped markets in China, and supplement working capital and general corporate purposes.

This IPO did not secure any external cornerstone investors. Equity ownership is concentrated among entities affiliated with the founding team, with Chongyi Food Factory and employee shareholding platforms collectively holding 75% of the shares, resulting in relatively high post-listing ownership concentration. Zhongtai International acted as the sponsor. The company is also the first consumer-focused enterprise listed on the Hong Kong Stock Exchange specializing in Nan Suan Zao (Southern Jujube) products, earning it the market moniker 'the first Nan Suan Zao stock.'

Qiyunshan Foods has specialized in the Nan Suan Zao snack segment for over three decades, with its headquarters located in Chongyi County, Jiangxi Province—known as 'China’s hometown of Nan Suan Zao.' According to CIC Consulting, the company held a 29% retail market share in Nan Suan Zao products in 2025, firmly ranking first in the industry. Its flagship product, Nan Suan Zao cake, carries dual certifications as a Green Food product and a National Geographical Indication product. In 2025, its two core jujube-based products together contributed 96.8% of total revenue, with gross margins consistently above 50%, reflecting strong competitive barriers in this niche segment.

Notably, recent Hong Kong-listed consumer IPOs have shown significant divergence, with some seeing strong pre-market trading but facing downward pressure on their listing day. The packaged snack sector lacks a stable valuation anchor, and combined with the company’s high concentration of ownership among the controlling shareholder group and a relatively small free float, the share price may experience substantial volatility following its listing on July 9.

Market analysts have also highlighted multiple potential risks: the company’s revenue is heavily reliant on its jujube-based products, resulting in a narrow product portfolio; competition in this niche snack segment is intensifying; and uncertainties remain around channel expansion and new product development. Investors should avoid unwarranted optimism based solely on strong pre-market gains and instead adopt a rational perspective on the volatility risk surrounding tomorrow’s listing.

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