Nayuki formally lands on HKEx
Last week, China’s leading new-type bubble tea chain Nayuki, also known as Naixue’s Tea, was officially listed on the Hong Kong Stock Exchange.
It opened with the price of $2.43 USD per share on the first day of listing, a drop of 4.75% from its original issued price of $2.55 USD.
According to CBNData, the total size of China’s tea beverage market was $68.3 billion USD; the new-type tea drink market within it values at $15.7 billion USD, the Nayuki brand is worth $4.1 billion USD.
Based on total retail consumption value in 2020, Nayuki is the second largest tea chain in China’s high-end tea beverage shop market, with a market share of 18.9%, second only to the 27.7% of HEYTEA.
In addition, the number of Nayuki tea shops increased from 44 shops as of December 31, 2017, to 491 shops as of December 31, 2020, and is estimated to further increase to 556 as of the Latest Practicable Date.
Through this IPO, Nayuki raised a total of $618 million USD in net funds, 70% of which will be used to expand its store network and increase its market penetration within the next three years. The other 30% will be used to strategically improve the firm’s supply chain system as well as strengthen digital and intelligent technologies to further increase the company’s overall operating efficiency.
