(Yicai Global) Dec. 6 -- Weilong Delicious Global Holdings, a leading Chinese snack maker, aims to raise between HKD1 billion and HKD1.1 billion (USD128.7 million and USD141.5 million) in an initial public offering in Hong Kong.

Weilong plans to offer nearly 96.4 million shares on the Hong Kong Stock Exchange at a price of up to HKD11.40 (USD1.47) apiece, according to the IPO prospectus released yesterday. The offer is scheduled to close on Dec. 8 and the shares are set to debut under the stock ticker [HKG: 9985] on Dec. 15.

Known as the 'King of Latiao,' one of China's most popular snacks, Weilong was the country's biggest spicy snack maker by sales last year, with a market share of 6.2 percent, according to data from Frost & Sullivan.

The latiao market is expected to be worth CNY94.9 billion (USD13.6 billion) by 2026, with a compound annual growth rate of 8.6 percent, according to Intelligence Research Group.

Weilong fell into the red in the first six months of this year, reporting a net loss of CNY260.8 million (USD37.4 million), versus a net profit of CNY357.6 million a year earlier. Revenue dropped 1.8 percent to nearly CNY2.3 billion (USD329.5 million).

Sales declined after two price hikes in 2020 and 2021 caused by a surge in raw material costs due to the pandemic. Weilong's sales volume of seasoned flour products, vegetable products, and bean-based and other products fell 13.8 percent, 3.9 percent, and 19.7 percent, respectively, in the in the six months ended June 30, the prospectus showed.

Weilong’s excessive reliance on physical outlets is another concern, as the company lacks online channels to offset the sales decline at brick-and-mortar stores. The firm increased the proportion of its online sales to 11.5 percent of the total last year, from 7.4 percent in 2019, per the prospectus.

Morgan Stanley, China International Capital Corporation, and UBS are the IPO's joint sponsors.

Editors: Shi Yi, Futura Costaglione