One of China’s largest bubble tea chains, Naixue’s Tea, seeks a public offering in Hong Kong in the second quarter, aiming to raise $400 to $500 million.
The firm filed confidentially for an offering in the U.S. early last year, but due to the coronavirus outbreak and the impact of Luckin Coffee's (OTC: LKNCY) financial fraud, the company turned to the Stock Exchange of Hong Kong instead.
According to Bloomberg, Nayuki has just completed a new funding round of roughly $100 million, which values the company at nearly $2 billion. Billionaire Jack Ma’s Yunfeng Capital was among the investors in the latest round, said people familiar with the matter.
Headquartered in Shenzhen, Nayuki was founded by Shenzhen Pindao Restaurant Management Co. in 2015. The company targets young female customers and sells high-end fresh fruit tea and a variety of popular cold brew tea. Its signature drink is fresh strawberry jasmine green tea with a layer of light salty cheese foam on top.
The founder of the company, Xin Peng, said she planned to open its first shop in New York, but the plan was postponed because of Covid-19.
“I spoke with some American friends and from their perspective, tea is seen as more high-class than coffee. People who drink tea are elegant, graceful, and have a higher quality of life,” Peng told local news media.
Right now, the company has more than 500 stores in 70 cities in China, according to its official site.