Hong Kong’s red-hot initial public offering market has raised hundreds of billions for China’s high-growth technology and industrial champions over the past year. There’s now an unusual addition to the listing frenzy: the world’s largest producer of caviar.
Xunlong Sci-tech is behind the internationally renowned caviar brand Kaluga Queen
Investors are gearing up for this month’s listing of Hangzhou Qiandaohu Xunlong Sci-tech. The agricultural company’s planned $157 million IPO is another sign that China’s progress in innovation is extending far beyond the usual tech suspects.
While China’s advances in electronics, AI, robots and electric vehicles have inspired a fire-hose of headlines, the country is also making advances in premium agricultural products, driven by decades-long, state-backed efforts in agricultural engineering technologies such as sturgeon genetic breeding.
Xunlong Sci-tech has become the poster child of China’s agricultural success as caviar supplies from Russia and Iran—traditionally the world’s two dominant producers of the delicacy—have dwindled in recent years.
High-end food items such as foie gras and caviar from China are increasingly finding their way into top-tier kitchens around the world due to their combination of relatively affordable pricing and good quality.
Xunlong Sci-tech is behind the internationally renowned caviar brand Kaluga Queen, which is widely served at Michelin-starred fine dining restaurants from Paris to New York and celebrated by star chefs like Alain Ducasse, according to the famed French gastronomy guide itself.
The company operates from the eponymous freshwater Qiandao Lake in Southern China that boasts pristine water quality and a centuries-old sturgeon food culture.
Today, 54% of the world’s commercial sturgeon farms are located in China, with Chinese caviar accounting for over 40% of global supply in 2024, according to data from International Trade Centre. Xunlong Sci-tech, which holds the largest sturgeon broodstock reserve globally, has more than 30% of the world’s market share. It’s been the world’s largest caviar producer for the last 11 years.
Demand is being driven by high-net-worth spending abroad, particularly in the U.S., which is now its largest market. A record-breaking AI-driven equity rally and generous tax cuts in the U.S. have minted a new class of affluent consumers with a big appetite for luxury food.
In comparison, growth in China’s luxury market has been subdued after years of anti-corruption campaigns and a property crisis that has eroded individual wealth.
The firm said most of the IPO’s proceeds will be used to expand its aquaculture base and production capacity over the next five years, as well as growing its international sales channel.
Xunlong Sci-tech has priced its IPO at HK$75.50 per share, raising 1.23 billion Hong Kong dollars, or $156.9 million. According to its exchange filing Monday, shares are expected to start trading on June 30.
