🍵 Green Tea Group’s IPO: Brewing Success in China’s Casual Dining Scene!
IPO Details
Purpose of IPO: Green Tea Group aims to raise approximately HKD 1.21 billion (USD 156 million) through its Hong Kong IPO. The funds are intended to support expansion into tier-two cities and below, focusing on opening smaller restaurant formats to enhance market penetration.
IPO Placement & Share Details
Shares Offered: 168,364,000 shares at HKD 7.19 per share.
Allocation: 10% for Hong Kong public offering and 90% for international placement.
Listing Date: Trading is set to commence on May 16, 2025.
Investors & Subscription Levels
Institutional Investors: The IPO is backed by eight cornerstone investors, including Harvest Global Investments and China Southern Asset Management.
Investment Bankers & Sponsors
Joint Sponsors: Citigroup and China Merchants Bank International (CMBI).
Company Overview
Business Model: Green Tea Group operates casual Chinese restaurants, offering fusion cuisine at accessible price points. The company focuses on traditional Chinese décor to enhance dining experiences.
Market Position: As of the latest data, Green Tea Group operates 489 restaurants across 21 provinces, four municipalities, and two autonomous regions in Mainland China, as well as the Hong Kong Special Administrative Region.
Management Team: The company was co-founded by Mr. Wang Qinsong and Ms. Lu Changmei.Market Trends & Timing
Sector Trends: The global green tea market is projected to reach USD 35.27 billion by 2032, growing at a CAGR of 8.13%.
The company has secured approval from the Hong Kong Stock Exchange for its IPO on its fifth attempt, indicating persistence and potential investor confidence.
Peer Comparison
| Company |
P/E Ratio |
P/B Ratio |
Revenue Growth |
Net Margin |
ROE |
Debt/Equity |
Market Cap (USD) |
Stores |
| Green Tea Group |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
489 |
| Xiabu Xiabu |
25.4 |
3.2 |
12% |
8.5% |
15% |
0.5 |
1.2B |
1,000+ |
| Haidilao |
30.1 |
4.5 |
20% |
10.2% |
18% |
0.6 |
10B |
1,300+ |
| Jiumaojiu |
22.7 |
2.8 |
15% |
9.1% |
16% |
0.4 |
2.5B |
400+ |
Thank you
