Key Takeaways:
LXJ has applied a third time to list in Hong Kong, reporting revenue of 4.58 billion yuan and a profit of 371 million yuan in the first eight months of last year
The chicken chain operator ranks first in China for Chinese-style fast-food, yet commands just 0.9% of the market
KFC may rule the China roost when it comes to chicken fast food restaurants, with more than 12,000 stores nationwide. But in reality, the Chinese fast-food market is still quite fragmented, especially among chains serving more Chinese-style dishes.
Such restaurants currently total over 1.7 million, with no real king of the roost. But as the largest chick in that space, LXJ International Holdings Ltd. (LXJ) is aiming to raise some big bucks to consolidate its position through a public listing. This month, the company renewed its plan to list in Hong Kong, its third such attempt, hoping to succeed in one of the city's hottest IPO markets in years. CICC and Haitong International are joint sponsors of the deal, showing the listing is squarely aimed at Asian investors who are more likely familiar with LXJ's story.
LXJ was originally dubbed Feixi Old Hens at the time of its founding by army veteran Shu Congxuan in 2003. Shu's actual journey began two decades earlier in 1982 when he invested his 1,800 yuan ($258) wedding fund, then a princely sum equal to more than a year's salary, to raise 1,000 free-range chickens in his hometown of Feixi in East China's Anhui province. That venture would lay the foundation for what would go on to become the Feixi Old Hens chain.
The restaurant's signature dish, Feixi Old Hen soup, quickly became a runaway hit, fueling the chain's growth. While the Feixi Old Hens name ...
