We are pleased to announce that on 23 April 2024, China Merchants Securities (HK) Co., Limited (“CMS (HK)”, a subsidiary of China Merchants Securities International Company Limited), acting as one of Joint Bookrunners and Joint Lead Managers of Sichuan Baicha Baidao Industrial Co., Ltd. (“the Company” or “Chabaidao”, stock code: 2555.HK), assisted the Company to successfully commence trading of its shares on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”). A total of approximately 148 million H shares are issued and offered under the Global Offering, at an offer price of HK$17.50 per H share, raising a total of approximately HK$2.59 billion (before the exercise of the over-allotment option) or HK$2.97 billion (after the over-allotment option is fully exercised).
Leveraging our extensive project experience and in-depth understanding of the food & beverage sector, CMS (HK) helped the Company deeply discover its unique strengths and fully showcase its investment highlights to investors, whose confidence was further boosted through our continuous and timely communication. By fully utilizing our integrated platform and valuable client resources, CMS (HK) selectively invited more than 20 high-quality investors including long-only funds, multi-strategy funds, PE funds and family office to meet with the Company and thus enabled them to have a better understanding of the Company’s brand, product and business model. After extensive investor outreach and marketing work, CMS (HK) assisted the Company to complete the listing despite the current fluctuating market. The capital market has given positive response to Chabaidao’s IPO, where overall the International Placing received 1.11 times subscription.
About Chabaidao
Since establishment, Chabaidao has been dedicated to exploring combinations of natural ingredients with Chinese tea. The Company has been continuously developing diversified tea drink products and focusing on enhancing consumer experience. According to Frost & Sullivan, it ranked third in China’s freshly-made tea shop market in terms of retail sales value in 2023 with a market share of 6.8%. The ChaPanda store network in China comprised 8,016 stores, spanning across 31 provinces and municipalities, covering all provinces and different tiers of cities in China. In 2023, the total retail sales value of ChaPanda stores reached approximately RMB16.9 billion. From 2021 to 2023, the CAGR for its net profit reached 21.6%.