The Chinese chain Nayuki, specializing in innovative tea drinks, raised some 550 million euros when it went public on Wednesday in Hong Kong, driven by the popularity of these beverages in Asia.
Available in different flavors, these milk or fruit teas are generally produced at the point of sale and have added sugar, jelly, cream, juice or tapioca pearls (bases of the famous “pearl tea”). These “new tea drinks” are particularly popular with young people and in the Asian country, where brands have multiplied in recent years.
Nayuki, which has 550 points of sale in China, was created in 2015. The brand was founded by two former singles, now a couple and who had mentioned the idea of creating the company … their first date.
The market is expected to triple by 2025
The title lost 4.75% in the morning, quoting 18.86 Hong Kong dollars (HKD), or 2.04 euros. Nayuki had put up for sale 257.3 million shares at a unit price of 19.80 HKD (2.14 euros). According to financial news agency Bloomberg, the company is valued at $ 4.38 billion (3.6 billion euros).
Thanks to this fundraising, Nayuki plans to open 650 additional outlets in China, where the appetite for these drinks is expected to continue. The market is expected to triple by 2025 and weigh 53.2 billion dollars (44.71 billion euros), according to research firm China Insights.
Competition is fierce in this country where the Heytea, Lelecha and CoCo Tea brands share the bulk of the market with a multitude of other players as well.