Chinese premium tea chain Nayuki Holdings Ltd. has filed to float its shares in Hong Kong after previously pursuing a New York listing.
The company, also known as Naixue’s Tea has selected Huatai International, CMB International, and JP Morgan as the sponsors on the deal.
In February 2020, Nayuki confidentiality filed for a U.S. IPO but the coronavirus pandemic and the accounting scandal of Chinese beverage maker Luckin Coffee (OTC: LKNCY), caused the tea chain to alter its plans.
Hong Kong newspaper Apple Daily reported in September that Nayuki was looking to raise $400 million to $500 million in a Hong Kong IPO. In late December, Nayuki completed a funding round that raised more than $100 million, valuing the company at almost $2 billion, as reported by Bloomberg. The series C funding round was led by private equity firm PAG.
Co-founders Zhao Lin and Peng Xin opened Nayuki’s first store in Shenzhen in November 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. One of Nayuki’s biggest competitors is Shenzhen-based HeyTea. As of September 2020, Nayuki had 422 teahouses, including locations in Japan and Hong Kong. The company had plans to open its first shop in New York but that got postponed because of Covid-19.
For the nine months through 2020, Nayuki revenues hit 2.11 billion yuan ($326.7 million), up from 1.75 billion yuan in the same period in the preceding year. However, its losses widened to 27.5 million yuan in the first nine months yuan versus 3.9 million yuan in the same period in 2019.