| Hong Kong

Chinese tea chain ChaPanda seeking to raise $330m in IPO

Chengdu-based ChaPanda is expected to begin trading on the Hong Kong Stock Exchange on 23 April 2024 and will use the raise to strengthen its supply chain and modernise its nearly 8,000 stores

Front view of a Cha Bai Dao tea shop in Beijing, China | Photo credit: Tada Images via Shutterstock


Chinese tea chain ChaPanda is seeking to raise HK$2.6bn ($330m) in a Hong Kong Stock Exchange listing, which it will use to strengthen its supply chains and upgrade its stores and production facilities. 

ChaPanda, also known as ChaBaiDao in mainland China, will sell 147.7 million shares – approximately 10% of its total – at HK$17.50 ($2.23) each. The chain, best known for its bubble tea and fruit-infused tea ranges, is expected to commence trading on the Hong Kong Stock Exchange on 23 April 2024. 

An extra 22.1 million shares could be sold via a greenshoe option, which grants the underwriter the right to sell more shares than originally planned if demand exceeds expectations. If approved, the move could see the IPO value reach up to HK$3bn ($380m). 

Value-focused ChaPanda is owned by Chinese billionaire Wang Xiaokun, who currently holds an 18.02% share of the business while his wife, Liu Weihong, controls 5.74%. The couple’s holding company Hengsheng Herui owns 67.67%. 

Founded in Chengdu in 2008, ChaPanda has significantly scaled its franchise network to operate more than 7,900 sites across China. While most of its stores are in first and second-tier cities, ChaPanda is currently seeking outlet growth across China’s lower-tier cities, which it views as having ‘promising potential for consumption growth’. 

The tea chain has completed two investment rounds with a combined value of RMB 17.5bn ($2.4bn) and achieved 35% year-on-year sales growth in 2023 to reach RMB 5.7bn ($788m), according to its IPO prospectus. 

ChaPanda is currently the third-largest tea chain in China by outlets behind Mixue and Guming, which operate more than 36,000 and 9,000 stores respectively. 

The company is the third Chinese tea chain to submit an IPO application on the Hong Kong Stock Exchange following Zhengzhou-based tea and ice cream chain Mixue and Zhejiang-based tea chain GoodMe in January 2024. Other Chinese tea chains reportedly exploring IPOs in Hong Kong include health-focused Auntea Jenny and premium operator Chagee. 

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