Chinese bubble tea chain Gu Ming’s initial public offering (IPO) launched yesterday in Hong Kong, generating a remarkable HK$778 million from local investors, with the retail tranche nearly five times oversubscribed.
The company, known as GoodMe in English, is offering shares within a price range of HK$8.68 to HK$9.94. The IPO aims to raise up to HK$1.58 billion, with investors required to make a minimum investment of HK$4,016.10 for a 400-share lot. Cornerstone investors include Huang River Investment, backed by Tencent, and LVC, a private equity firm involved in NetEase Cloud Music.
Gu Ming, a Sequoia Capital China-backed company, operates 9,823 stores as of November 2023. The bubble tea brand generated a gross merchandise value (GMV) of 19.2 billion yuan (HK$20.62 billion) in 2023, marking a 37.2 percent increase from the previous year. It holds the title of China’s largest mid-priced freshly-made tea store brand, ranking as the second-largest across all price ranges in terms of GMV and store count.
With Hong Kong continuing to attract quality issuers, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu highlighted the city’s role as a key financial hub, noting a significant rise in capital raised from new stock listings.
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