Nayuki Eyes Hong Kong IPO

Consumer Staples Author: 王轶群 Jun 18, 2021 10:00 AM (GMT+8)

Chinese bubble tea chain Nayuki – also known as Naixue’s Tea – aspires to be the first share offering among new tea giants.

Peng Xin, founder of Naixue's tea

The shenzhen-headquartered company is expected to be listed on the Hong Kong Stock Exchange on June 30, 2021, with JP Morgan Chase, CMB international and Huatai international as its co-sponsors. Five cornerstone investors including UBS Fund, Huitianfu Fund, China Guangfa Fund, China Southern Fund and Qianyuan Fuxing Fund were also introduced. It planned to sell 257 million new shares at a suggested offering price of HKD 17.2 to HKD 19.8 per share, raising a total amount up to HKD 5094 million (USD 657 million). 

The firm said that in the next three years, about 70% of the total fund-raising will be used to expand the tea shop network and further improve market penetration, while the remaining 30% will be used to strengthen the technical ability and sharpen the efficiency, enhance the supply chain capacity to support its scale expansion and for working capital and general business purposes.

On the evening of June 17, the tea-maker held an IPO press conference in Hong Kong, announcing that the IPO would accept subscriptions between the 18th and 23rd, closing on the 23rd; the results are expected to be announced on the day right before the big day.

According to the prospectus, from 2018 to 2020, the total revenue of Nayuki was CNY 1.09 billion, CNY 2.5 billion and CNY 3.06 billion respectively, of which the revenue generated by tea shops was CNY 910 million, CNY 2.29 billion and CNY 2.87 billion, respectively. There are now 556 direct stores in more than 70 cities in China and Osaka, Japan.

Founded in 2015, this fashionable tea brand focuses on tea and soft European-style bread products, targeting the young generation of consumers aged 20 to 35. It is also worth mentioning that on July 2, 2019, Nayuki’s Tea was selected as Top ten Chinese Tea brands.

At present, there is no specific listing process for other major brands in the entire tea circuit. At the beginning of 2021, MXBC (蜜雪冰城) obtained its first round of financing, with over CNY 20 billion in valuation. It might be on the A-share market within the year. The latest valuation of Hey Tea was CN Y16 billion, with no listing news.