Nayuki Holdings Ltd. set its Hong Kong share price at the very top of the range it had pitched to investors, and the haul came to HK$5.09 billion (US$656 million). The Shenzhen-based bubble tea chain offered 257.3 million shares at HK$19.8 each. Buyers had been told to expect HK$17.2 to HK$19.8, according to deal terms Bloomberg News obtained.
That price puts a value of about US$4.38 billion on the company. Its last funding round valued it at US$2 billion.
Nayuki is best known for fresh-fruit teas, among them drinks crowned with cheese foam. It also sells cold-brew beverages and baked goods. Its shares were due to begin trading in Hong Kong on June 30, with JPMorgan Chase & Co, CMB International Capital Ltd. and Huatai International Ltd. acting as joint sponsors.
A busier market, with limits
The listing arrives as Hong Kong’s IPO calendar picks up. Only two deals priced in April and four in May, Bloomberg’s data showed. At least 13 companies are now lined up to go public. Part of the reason, by Bloomberg’s account, is that the global tech selloff has eased, which made the backdrop friendlier for new issues.
Angelalign Technology Inc, which makes clear orthodontic braces, set the tone on June 16. Its shares jumped 132 percent on debut, one of the best showings of the year in the city.
Not every newcomer got that welcome. China Youran Dairy Group Ltd and CARsgen Therapeutics Holdings Ltd slumped 12 percent and 9 percent in their trading debuts last Friday. Investors have grown pickier as markets swing more sharply and as they brace for tighter US monetary policy.
The company behind the cups
Nayuki lost 203 million yuan in 2020, against a 40 million yuan loss a year earlier, its prospectus shows. Revenue still climbed 22 percent from the year before, to 3.1 billion yuan.
At the end of last year the chain ran 491 flagship outlets. Of those, 489 were on the Chinese mainland, with one in the Hong Kong Special Administrative Region and one in Japan.
The money raised is earmarked for more teahouses, a deeper presence in the markets it already serves and a stronger supply chain. Bloomberg News reported that Nayuki first planned a US listing, targeting February last year, before it settled on Hong Kong.
