BRIEF: Auntea Jenny surges in Hong Kong trading debut
Shares of bubble tea chain operator Auntea Jenny (Shanghai) Industrial Co. Ltd. (2589.HK) opened at HK$190.60 in their Hong Kong trading debut on Thursday, up 68% from their IPO price of HK$113.12. The stock later pared some of those gains but was still up 48.7% at HK$168.20 late in the trading session.
The company sold 2.41 million shares priced at the top of their given range, raising HK$273 million ($35 million). The retail portion of shares for sale to local Hong Kong investors was oversubscribed by 3,616 times, while the international portion was 1.57 times oversubscribed.
The company plans to use 25% of the proceeds to enhance its digital capabilities, 20% for R&D, 20% to strengthen its supply chain capabilities, 15% for brand promotion and expansion of its store network, and 10% for marketing.
The company’s revenue rose from 2.2 billion yuan in 2022 to 3.35 billion yuan in 2023, before falling to 3.28 billion yuan last year. Its profits totaled 150 million yuan, 380 million yuan and 330 million yuan over that period, respectively, while its store count grew from 5,307 in 2022 to 9,176 last year.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
