Iced chilly bubble tea on a scorching summer season day.
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Shares of Chinese language bubble tea chain Chabaidao tumbled nearly 40% on its buying and selling debut on the Hong Kong inventory change.
The inventory, formally listed as Sichuan Baicha Baidao Industrial, fell as little as 10.84 Hong Kong {dollars} within the late morning — about 38% under its IPO value of HK$17.50.
The bubble tea agency’s IPO was the biggest itemizing in Hong Kong in 2024 to this point, with the corporate garnering web proceeds of HK$2.59 billion from its IPO, earlier than itemizing bills, in line with its prospectus filed to the Hong Kong change.
The corporate stated it ranked third in China’s freshly made tea store market by way of retail gross sales worth in 2023, with a market share of 6.8%
Chabaidao provided 90% of its 147.7 million shares in a worldwide providing, whereas the rest 10% have been provided in a public provide in Hong Kong.
Nevertheless, the general public provide was solely 0.5 occasions subscribed, main the agency to reallocate the rest of the shares to the worldwide provide, which was 1.11 occasions subscribed.
Within the prospectus, Chabaidao revealed that income for the monetary yr ended 2023 stood at 5.7 billion yuan ($786.8 million) and gross revenue got here in at 1.96 billion yuan in the identical interval.
From 2021 to 2023, the compounded annual development fee for its web revenue reached 21.6%, it added.
