BRIEF: Bama Tea to raise up to $58 million in Hong Kong IPO

Tea producer Bama Tea Co. Ltd. (6980.HK) launched its Hong Kong IPO on Monday, aiming to sell 9 million shares for HK$45 to HK$50 apiece to raise up to HK$450 million ($58 million). Shares will be sold in lots of 100, requiring a minimum investment of HK$5,050.43. Subscriptions will close on Thursday, with trading set to begin next Tuesday.

Bama holds the crown as China’s leading premium tea seller, based on its data from 2024. The company also clinched the top spot for sales in the Chinese oolong and black tea markets last year. Its retail footprint included 3,585 stores at the end of June, with 93% of those franchised.

The company reported its revenue fell 4.2% year-on-year to 1.06 billion yuan during the six months through June, while its profit slumped 18% to 120 million yuan. It attributed the declines to falling sales from its brick-and-mortar stores and rising administrative costs. That double pressure squeezed the company’s net profit margin, which fell to 11.3% in the latest six-month period from 13.2% a year earlier.

By Lau Chi Hang

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