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Moutai to plan three IPOs by 2020

Baijiu producer China Kweichow Moutai Distillery Group is reportedly planning initial public offerings for three of its businesses by 2020.

Kweichow Moutai is planning three IPOs by 2020

The Chinese baijiu maker is allegedly preparing to list its e-commerce arm, its agricultural subsidiary and Guizhou Xijiu, a business selling its Chinese liquor Xijiu, according to a report by BloombergThe Xijiu brand, which takes it name from Xi Jinping, has gained in popularity with the Chinese politician’s rise.

The company’s chairman Yuan Renguo said it plans to build “an international liquor investment group and become a respected world-class enterprise”.

Kweichow Moutai beat Diageo for the title of most valuable alcoholic drinks firm in April this year, thanks to a share price surge.

In the 2016 Brand Finance Spirits 50 report, Moutai is ranked at the top spot, with values climbing by 60% to US$11.5bn in the report.

The brand historically saw 50% of its sales go to government entities, and was particularly exposed to the crackdown on excessive gift-giving. However the brand changed its strategic focus to private enterprise and individual consumers, and can now command prices of up to RMB1,200 (US$175) per bottle.

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