Tea Baidao became the second stock of new tea drink, breaking on the first day of listing, and the opening stock price fell by more than 30%
On April 23, Xincha Tea Drinking Baidao (2555. HK) was officially listed on the main board of the Hong Kong Stock Exchange, becoming the second tea brand to be listed after Nai Xue, and also the first franchised tea brand to be successfully listed. On the first day of listing, Chabaidao broke and opened 10.06% lower, and as of 10:01 on April 23, Chabaidao's share price fell 31.31% to HK$12.02, with a market value of HK$17.76 billion. If calculated according to the offer price and issued share capital, the market value of Tea Baidao is about HK $25.86 billion.
In this listing, Chabaidao intends to offer about 148 million shares globally, 14,776,400 shares in Hong Kong, China, about 133 million shares in the international offering, and another 15% over-allotment option, with an offer price of HK$17.50 per share. The results of the IPO show that the offering part of Chabaidao International was subscribed 1.11 times, and the actual funds raised were about HK $2.586 billion, which was the largest IPO raised by Hong Kong stocks this year.
Founded by husband and wife Wang Xiaokun and Liu Weihong, Cha Baidao opened its first store in Chengdu, Sichuan Province in 2008, mainly through the franchise model to expand the network. Its products are positioned as low-end, the price is between 8-26 yuan, and there are more than 30 kinds of drinks in the store, of which classic products account for 60%, and its hot-selling products mainly include poplar nectar, soybean milk jade unicorn, signature taro round milk tea, jasmine milk green and watermelon bobo.
In August 2023, Chabaidao submitted its prospectus to the Hong Kong Stock Exchange for the first time, and on March 24, 2024, Chabaidao passed the hearing of the Hong Kong Stock Exchange. According to the prospectus, from 2020 to 2023, Chabaidao will achieve revenue of 1.080 billion yuan, 3.644 billion yuan, 4.232 billion yuan, and 5.704 billion yuan respectively, and net profit of 238 million yuan, 779 million yuan, 965 million yuan, and 1.151 billion yuan respectively in the same period. According to Frost & Sullivan, in 2023, Chabaidao is the third-largest freshly made tea company in China, accounting for 6.8% of the market share, behind Mixue Bingcheng and Gu Ming, which occupy 44% and 7.8% of the market share, respectively.
As of April 5, the number of Chabaidao stores was 8,016, and the vast majority of them were franchised stores. In the process of continuous expansion of stores, the store revenue of Chabaidao has declined significantly compared with the previous year. From 2021 to 2023, the average retail sales of each store of Chabaidao will be 2.728 million yuan, 2.331 million yuan, and 2.388 million yuan respectively, and the average daily sales volume of each store will be 163,200 cups, 138,900 cups, and 143,500 cups respectively during the same period.
In addition to Tea Baidao, this year, Mixue Bingcheng, Gu Ming, and Shanghai Auntie have all submitted prospectuses to the Hong Kong Stock Exchange, and are still waiting for the review stage of the Hong Kong Stock Exchange.
Written by: Zhan Danqing, reporter of Nandu Bay Finance Agency