China Ouhao Winery Holdings has sold 124.55 million new shares through an initial public offering to institutional investors and high net worth individuals, including Singapore insurer Great Eastern, the China Wines Information Website reveals.

Great Eastern reportedly took up over 20 per cent of the private placement shares from the Shandong-based firm. The other investors were from Hong Kong, Malaysia, and Singapore.

The IPO result adds to evidence that wine is seen as a strong investment area; in the West, there are already a number of wine funds; investors can also track the performance of top-brand prices via the London-based Liv-ex exchange.

China Ouhao is expected to make its debut listing on Bursa Malaysia's Main Market on 3 November. The public issue is said to represent around 19.8 per cent of the firm's enlarged issue and paid-up share capital. Of the total, 8 million shares are open to the Malaysian public.

"Wine consumption has grown at an impressive rate of about 30 per cent annually. When we started our business in 1997, the annual wine consumption in China was of a mere 50,000 tonnes but it grew to 1 milion tonnes last year, but there is much room for future growth," Wang Chao, executive chairman and chief executive, was quoted as having said.

Proceeds from the share sale will be used to expand the company's market presence and distribution network, as well as enhance management of materials and suppliers. To date, China Ouhao has 113 stores in China, which it reportedly plans to increase to 200 by the end of 2011.