Chinese tea drinks firm Guming aims to raise US$202 million in Hong Kong IPO

CHINESE bubble tea drinks company Guming Holdings is aiming to raise up to US$202 million in a Hong Kong initial public offering (IPO), according to regulatory filings on Tuesday (Feb 4).

The company is selling 158.6 million shares in a price range of HK$8.68 to HK$9.94 each, the filings showed.

In that range, Guming will raise US$177 million to US$202 million and the final price will be decided by Friday, according to the filings.

The stock will begin trading on the Hong Kong Stock Exchange on Feb 12.

Five cornerstone investors led by Tencent subsidiary Huang River have subscribed to the IPO for up to US$71 million worth of Guming stock collectively, the filings showed.

Guming has 9,000 stores across mainland China and had previously aimed to raise up to US$500 million via a Hong Kong listing, Reuters reported in September.

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The company’s IPO application lapsed in 2024 after six months of waiting for regulatory approval, sources told Reuters.

Bubble tea firms, led by Guming and Mixue, had their Hong Kong IPO plans put on hold last year by regulators worried about the after-market performance of their already listed peers.

China’s bubble tea maker Sichuan Baicha Baidao raised US$330 million in a Hong Kong IPO in April 2024 and its shares are down nearly 44 per cent from the listing price. REUTERS