Chinese tea shop giant Sichuan Baicha Baidao aims to raise US$330 million in Hong Kong’s biggest IPO of 2024
- Proceeds will aid Baicha Baidao’s expansion in China as it eyes the boutique coffee industry
- It comes after Hong Kong’s IPOs fell 29% in the first quarter to US$604.4 million, the slowest start to a year since 2009
The Chengdu-based company is offering 147.7 million shares at HK$17.50 each, for expected proceeds of HK$2.5 billion, after deducting underwriting commissions, fees and estimated expenses, assuming no overallotment option is exercised.
Baicha Baidao operates ChaPanda stores, a popular bubble tea chain that has a particularly strong presence in the southern provinces of China. The shops sell a range of fruit tea drinks primarily targeted at younger customers.
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Gu Jilin, the head of investment and financing at Baicha, said at a media briefing that the “timing” was right to list, adding that “even amid weaker market conditions, we will continue to attract international investors.”
