Chinese mainland energy and sports drink maker Eastroc Beverage Group Co had a tepid debut in the Hong Kong Special Administrative Region after raising $1.3 billion in one of the city’s biggest listings so far this year.

Eastroc traded between HK$246.80 and HK$249.80 after an offering that priced shares at HK$248. The price represents a discount of around 14 percent versus its Shanghai-traded shares based on Monday’s close.

Eastroc’s debut comes amid a blockbuster start to 2026 for Hong Kong’s IPO market. New share sales fetched about $5 billion last month, the highest total for any January on record in the city, according to data compiled by Bloomberg. That’s after listing proceeds last year reached the highest since 2021.

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 “The company has high brand recognition, with its image deeply impressed in the minds of consumers,” SDIC Securities International analysts including Gloria Cao wrote in a note. It “has maintained rapid growth and offers strong cost-effectiveness and cost leadership.”

While mainland AI companies have comprised many of the listings, Eastroc isn’t alone in the consumer-staples space. Snacks maker Busy Ming Group Co debuted last week and has gained 66 percent since its $470 million offering. Then, pig breeder Muyuan Foods Co is set to begin trading on Friday after raising $1.4 billion in its H share offering.

The issuance drew participation from high-profile institutions such as Al-Rayyan Holding LLC, a subsidiary of Qatar’s sovereign wealth fund, Taibai Investments Pte, and True Light Investments, both subsidiaries of Temasek Holdings Pte. Tencent Holdings Ltd’s Huang River Investment Ltd, and affiliates of BlackRock Inc and UBS Asset Management also subscribed to its shares.

Eastroc makes energy and sports beverages, as well as other soft drinks like teas and juices. The company traces its roots to a firm that was established in 1994 and listed its shares on the Shanghai Stock Exchange in 2021.

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The company plans to use proceeds from the offering for purposes including boosting production and upgrading its supply chain, expanding domestically and overseas, pursuing potential investments and acquisitions, and building its brand. Profits in the first nine months of 2025 reached 3.76 billion yuan ($541 million), an increase of 22 percent from the same period in 2024, according to its prospectus.

Eastroc has been the mainland’s largest functional drinks company by sales for four years through 2024, with a market share of 26.3 percent, according to a prospectus citing consulting firm Frost & Sullivan. The offering gives the beverage maker a market cap of around $22 billion.