FRESH food chain operator Qiandama is considering an initial public offering (IPO) in Hong Kong as soon as this year, according to people familiar with the matter.

The Guangzhou-based firm had discussed a share sale with potential advisers, said the people. An offering could raise about US$400 million to US$500 million, the people said.

Qiandama is also planning to raise about 2 billion yuan (US$305 million) in a pre-IPO funding round that could value the firm at as much as 25 billion yuan, the people said.

Deliberations are ongoing and details of the fundraising plans, including size and timeline, could still change, the people said.

Qiandama, established in 2012, sells products including vegetables, fruits, fresh meat and eggs through its franchised stores, according to its website. The firm is well known for its slogan "never sells overnight meat" and offers discounts toward the end of each day to clear stocks.

It opened its first outlet outside the mainland in Hong Kong in 2018. The firm posted revenue of more than 7 billion yuan in 2019 and operates more than 2,000 stores as of July 2020.

(SD-Agencies)