China bubble-tea company Nayuki Holdings is aiming to raise up to HK$5.09 billion ($656 million) through an initial public offering in Hong Kong. The listing is expected to test the reported rebound in investor appetite for new listings.
The company said Friday it plans to sell up to 257.3 million shares. Nayuki set the tentative price for its shares at between HK$17.2 and HK$19.8 each. The company said it expects to set a final price by June 23.
Nayuki, which was valued at more than $2 billion during its last funding round, plans to float its shares in Hong Kong June 30. The company originally planned to float its share in the U.S. but it scrapped those plans due to the coronavirus pandemic.
Nayuki - the operator of one of the largest bubble teahouses in China - confidentially submitted a filing for an initial public offering in Hong Kong in February last year. It then decided to delay the listing after it was forced to close down approximately 61% of its teahouses in China.
According to its listing prospectus, Nayuki recorded an adjusted net profit of $1.1 million on revenues of over $148.85 million during its latest quarter ended in March. For 2020, the company posted revenue of around $480 million - a 22% year-on-year increase.
During its last funding round, the company raised more than $100 million. The Series C funding round was led by private equity company PAG, which includes Jack Ma's Yunfeng Capital.
New share sales in Hong Kong have begun to pick up following a two-month slump. Hong Kong IPOs started strong earlier in the year but then quickly abated as investors became more selective due to higher volatility and rising inflation.
Since the start of the year, companies have raised around $25 billion from Hong Kong IPOs - more than double the amount during the same period last year. The last company to launch an initial public offering, Angelalign Technology, gained more than 132% during its debut Wednesday. The strong performance was seen by some investors as a signal of the revival of the city's initial public offering market.
