A US initial public offering (IPO) has been confidentially filed by Naixue’s Tea (Naixue), who is one of the biggest bubble tea companies in China. According to the people familiar with the IPO, as much as S$559.4 million could be raised through this IPO.
The company, named Nayuki, has been consulting with advisors on the sale of the shares which could take place as early as this year, according to a Bloomberg News report on Tuesday (25 Feb).
Based on the information from the sources who wish to remain anonymous due to the private nature of the discussions, Nayuki is also planning to raise around US$50 million to US$100 million through a pre-IPO funding round.
According to the website of Naixue, it has more than 230 outlets across China. The company was founded in 2010 by Shenzhen Pindao Restaurant Management Co. Among Naixue’s products are fresh-fruit tea, baked goods, cold brew tea and also fresh-fruit tea topped cheese foam. One of its main rivals is another popular bubble tea firm, known as HEYTEA.
The aforementioned sources noted that details concerning Naixue’s offering, such as listing venue, timeline and size could change depending on how the Covid-19 situation is affecting market sentiment.
When asked for comments regarding the matter, a representative for Shenzhen Pindao did not offer a response.
Based on the data by Bloomberg, spearheaded by DouYu International Holdings and Luckin Coffee, Chinese firms raised around US$3.7 billion through US listings in 2019.
The data showed that among the nine Chinese firms, Citic Capital Acquisition Corp is one firm that completed its US first-time share sales this year with the raised funds amounting to a total of US$722 million.
