Chayan Yuese, a prominent Chinese milk tea chain based in Changsha, is reportedly exploring the possibility of an initial public offering (IPO) in Hong Kong. However, the company has not yet set a timeline for the potential listing, citing current sluggish market sentiment.
While a spokesperson for the company has denied any immediate plans for listing, mainland media sources indicate that several Chinese tea chain operators are eyeing Hong Kong as a favorable listing destination. This interest comes as Chinese regulatory authorities are purportedly discouraging food and beverage companies from conducting IPOs in domestic markets.
Recently, Mixue Bingcheng, China’s largest bubble tea chain, reportedly engaged Bank of America, Goldman Sachs, and UBS to orchestrate a Hong Kong IPO anticipated to raise around US$1 billion (HK$7.8 billion) next year. Similarly, Sichuan Baicha Baidao, the company behind the Cha Panda fruit and milk tea brand, submitted its application for a Hong Kong listing in August.
Meanwhile, Nayuki (2150), a premium bubble tea chain that went public in Hong Kong in 2021, has reported a net addition of 166 self-operated stores in the third quarter, signaling ongoing expansion efforts amidst market fluctuations.
As mainland tea chains navigate regulatory complexities and market uncertainties, the prospect of Hong Kong listings emerges as a strategic avenue for accessing capital and fostering growth opportunities on a global scale.
