Shares of Haidilao, China's largest hot pot chain, fell as much as 12% to their lowest level since March 2022 after the founder's family prepared to sell shares worth up to $353 million, surprising the market. According to the terms of the share sale document reviewed by Bloomberg, Shu Ping, co-founder and wife of Zhang Yong, chairman and chief executive officer, plans to sell 259 million shares through a company holding assets of a family trust. The sale price is at a discount of about 6% from the latest closing price, and the shares offered represent about 4.6% of the total issued and outstanding shares, or 12.2% of the shares traded in the market. This move comes shortly after the Chinese government announced it would officially begin collecting taxes on overseas trusts established by Chinese citizens, which may have pressured the founder's family to decide on this share sale. Meanwhile, Morgan Stanley analysts noted that the news of the share sale was surprising, as Zhang Yong had just increased his stake in May.
Haidilao International Holding LtdFounder's family plans to sell shares worth $353 million at a discount, causing a 12% plunge.
Super Hi International Holding Ltd.
SUPER HI INTERNATIONAL HOLDING LTD. American Depositary Shares
Morgan Stanley