One of China’s Biggest Bubble Tea Chains Seeks $400 Million U.S. IPO

(Bloomberg) -- Naixue’s Tea, one of the biggest bubble tea chains in China, has filed confidentially for a U.S. initial public offering that could raise as much as $400 million, according to people familiar with the matter.

Bloomberg News reported on Tuesday that the company, also known as Nayuki, has been working with advisers on the share sale that could take place as soon as this year. The firm is also looking to raise about $50 million to $100 million in a pre-IPO funding round, the people have said, who asked not to be identified as the discussions are private.

Naixue, started by Shenzhen Pindao Restaurant Management Co. in 2010, has more than 230 stores across China, according to its website. The chain sells fresh-fruit tea -- some with cheese foam on the top -- as well as cold brew tea and baked goods. HEYTEA, another popular bubble tea chain, is among its biggest rivals in the country.

Details of Naixue’s offering including timeline, size and listing venue could change as the novel coronavirus outbreak is weighing on market sentiment, the people said. A representative for Shenzhen Pindao didn’t respond to requests for comment.

Chinese companies raised about $3.7 billion through U.S. listings last year, led by DouYu International Holdings Ltd. and Luckin Coffee Inc., according to data compiled by Bloomberg. Citic Capital Acquisition Corp. is among the nine Chinese firms that completed their U.S. first-time share sales this year, raising a total of $722 million, the data show.

To contact Bloomberg News staff for this story: Dong Cao in Beijing at dcao59@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Joanna Ossinger

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With assistance from Bloomberg