By Jiahui Huang
Shares of Chinese tea maker Guming Holdings rose at their Hong Kong trading debut as sentiment surrounding initial public offerings in the Asian financial hub improved.
Guming's shares rose 1.8% to 10.12 Hong Kong dollars early Wednesday. The shares' offering price was at HK$9.94, at the top of their indicative price range.
The Zhejiang, China-based company raised gross proceeds of about HK$1.81 billion, or $232.3 million, in the offering, with cornerstone investments from Huang River Investment, GM Charm Yield and LVC, among others.
The tea maker will use its net proceeds to enhance its information technology team, supply chain capabilities, strengthen its branding and consumer engagement efforts, as well as recruit additional employees to manage its franchise.
Its revenue rose 16% on year to 6.44 billion yuan, equivalent to $1.15 billion, in the first nine months of 2024, while its net profit rose 11% to 1.10 billion yuan.
Shares of its peer Sichuan Baicha Baidao fell 27% at their trading debut last year, which raised regulatory concerns over approving Hong Kong IPOs for bubble tea companies.
Sentiment surrounding IPOs has improved as Chinese companies ranging from a toy maker and a chemical material supplier to a simulation specialist commenced Hong Kong public offerings at the end of 2024. On the final day of the year, another six companies made preliminary filings for fresh offerings.
Mixue, another Chinese bubble tea firm, said in January that it is seeking a Hong Kong IPO to upgrade its production facilities and boost marketing.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
February 11, 2025 22:47 ET (03:47 GMT)
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