ByteDance-backed Manner Coffee is weighing a Hong Kong IPO: sources

[HONG KONG] Manner Coffee, a Shanghai-based cafe chain, is considering an initial public offering (IPO) in Hong Kong that could raise at least US$300 million, people with knowledge of the matter said.

The Chinese company has been in discussions with investment banks to explore a listing that could take place as soon as 2022, said the people, who asked not to be identified as the information is private.

Deliberations are at an early stage and details of the share sale such as size and timing could still change, the people said. Representatives for Manner Coffee didn't respond to requests for comment.

Manner Coffee joins a slew of other Chinese beverage outlets weighing a market debut in Hong Kong. Heytea has tapped UBS Group for a potential IPO in the city next year, Bloomberg News reported last month.

Milk-tea chains Gu Ming and Lelecha are also exploring separate IPOs after bubble tea outlet Nayuki Holdings raised US$656 million in a June share sale, people familiar with the situation have said previously.

Manner, which started in 2015 as a roadside coffee stall in Shanghai, has now expanded to more than 130 outlets in the country, according to its website. Backers include TikTok owner ByteDance and a venture arm of food delivery giant Meituan.

BLOOMBERG