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(Bloomberg) -- Chinese soda maker Dayao is gearing up for a Hong Kong initial public offering as early as the second half of 2025, people familiar with the matter said, building on the city’s emerging recovery in new listings.

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The company, based in China’s Inner Mongolia, is working with advisers as it seeks to raise as much as $500 million, the people said, asking not to be identified as they weren’t authorized to speak publicly. Deliberations are ongoing, and the size and timing of the deal could change, the people said.

Dayao didn’t respond to a request for comment.

Founded in the 1980s, Dayao counts carbonated beverages, juices and protein drinks among its products. It has seven major production bases including those in China, according to its website. Dayao also exports to places including Russia and Southeast Asia.

Dealmakers are expecting a better year for Hong Kong IPOs, largely helped by second listings of companies whose shares are already traded in China. Hong Kong listings, including those of China-listed firms, raised more than $11 billion in 2024, nearly doubling from the year before, according to data compiled by Bloomberg. IPO volumes averaged nearly $30 billion in the 10 years before 2020, when the Covid-19 pandemic hit.

Shenzhen-listed battery maker Contemporary Amperex Technology Co. Ltd. is planning a Hong Kong share sale that could raise at least $5 billion, Bloomberg News has reported, while bubble-tea franchise Mixue Group is also considering a listing after getting approval from China’s securities regulator. Xiamen Hithium Energy Storage Technology Co. may raise more than $500 million in an IPO, people familiar with the matter have said.

--With assistance from Jing Jin.

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