BRIEF: Green Tea launches $156 million IPO, backed by eight cornerstone investors

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