6831.HK

Restaurant operator Green Tea Group Ltd. (6831.HK) launched its Hong Kong IPO on Thursday, aiming to sell 168 million shares priced at HK$7.19 each to raise about HK$1.21 billion ($156 million). Subscriptions will close on May 13, with trading set to commence on May 16.

The company said eight cornerstone investors have collectively agreed to buy HK$673 million worth of shares, including Wuxi Zixian and Action Chain.

Founded in the scenic coastal city of Hangzhou, Green Tea operated 493 restaurants across 28 provinces and municipalities in China at the end of last year. The company reported annual revenue of 3.84 billion yuan ($531 million) last year, up 6.9% year-on-year, as its profit climbed 18.5% year-over-year to 350 million yuan.

Green Tea plans to use 63.3% of proceeds from the listing to expand its restaurant network, with another 26.3% for investment in centralized food processing facilities. Another 5.4% will be used to upgrade its IT systems and infrastructure.

By Lau Chi Hang

To subscribe to Bamboo Works weekly free newsletter, click here

Recent Articles

Illustration of Chinese government pumping confidence into stock market

China’s state-driven stocks, and its corporate wars abroad

China's stock market rally is fast approaching its one-year mark, with the benchmark Hang Seng and Shanghai composite indexes both up around 40%. How much longer can it last, especially given the weak state of China's economy? And internet giants Meituan and DiDi have sued each other in Brazil, where they are competing in the takeout dining market. How is this case likely to end up?