Photo by Komod Ayal via Pexels

Chabaidao shares plummet 27% in HK debut

Analysts blame competition, weak sentiment for Chabaidao's disappointing debut.

Chinese bubble-tea maker Sichuan Baicha Baidao Industrial Co., known as Chabaidao, saw its shares drop 27% on its Hong Kong trading debut. 

This represents the worst first-day showing for an initial public offering (IPO) raising over $300m since September 2022, Bloomberg reported.

Analysts pointed to rising competition and weak consumer sentiment in China as key factors behind the disappointing debut.

The group offered 147.7 million shares at $17.50 each in its Hong Kong IPO, raising $2.5 billion.

“China’s freshly-made tea shop market is highly competitive and fragmented, with mounting pressure on selling prices, coupled with higher input costs,” said Ada Li, senior analyst for Asia Pacific consumer goods at Bloomberg Intelligence. “Consumers in China have been tightening their purse strings amid economic uncertainties and the ongoing property crisis.”

The company's poor performance is also expected to influence other tea-chain operators, like Sexy Tea and Mixue Group, who are eyeing the market for new share sales.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Hong Kong's independent director caps face opposition
About 1,500 lingering and 23 overboarding INEDS in 810 and 181 firms are in the spotlight.
Markets
AIA offers welcoming, campus-inspired workplace
The insurance group’s headquarters in Hong Kong has an indoor track, gym and sports hall.
Insurance
Startup Surge Motion eyes US expansion 
The company is pioneering a technology in fall prevention for the elderly.
OKOSIX eyes $5m funding to increase reach
The green-tech startup will use the funds to apply for global patents and scale production.