Chinese brand Bama Tea sets a new IPO subscriptions record on the Hong Kong stock exchange. Photo credit: Bama Tea
On October 28, Shenzhen-based Bama Tea Co., Ltd., (6980.HK, Bama Tea), a leading high-end Chinese tea enterprise, officially launched an IPO on the Hong Kong Stock Exchange. The public offering attracted 169,000 applications, resulting in an oversubscription of 2,684 times, setting a new record for the most oversubscribed IPO in Hong Kong this year. This demonstrates the capital market's widespread recognition of the branding and transformation of the high-end Chinese tea industry.
Bama Tea's successful listing marks a crucial step forward for the Chinese tea industry in connecting with international capital. The company offers 9 million H shares globally, of which 90% will be sold internationally and 10% will be sold publicly. As a result, the company will raise a total of HKD450 million ($58 million). Bama Tea priced its IPO at the upper limit of HKD50, and on its first day of trading, the stock surged 73% to HKD86.5, pushing its market capitalization to nearly HKD7.3 billion.
The company plans to use 35% of the proceeds to increase production and build a new production base; 20% to enhance the company's brand value and expand its product portfolio; 15% to provide funding for the company’s expansion and optimize its offline network; 10% to improve the digitalization level of the company's business operations; 10% to acquire or invest in participants in the Chinese tea industry; and 10% for working capital and general corporate purposes.
Its established omnichannel layout and diversified brand matrix constitute its core competitive advantages. Increased R&D investment is expected to continuously improve product standardization, addressing the "non-standard" pain point in the tea industry. The Chinese tea industry has traditionally relied heavily on experience and offers non-standardized products; however, a path to the capital market can still be forged through a standardized system, strengthened brand operations, and omnichannel integration.
As of June 30, 2025, Bama Tea has a total of 3,585 offline stores in China, including 244 directly operated stores and 3,341 franchise stores, with over 2,000 staff members. It is the number one seller of three famous teas in China: black tea, rock tea, and Tieguanyin. Bama Tea currently operates two tea refining production bases: the Anxi production base (primarily engaged in the refinement of Tieguanyin and blended teas) and the Wuyishan production base (mainly involved in the refinement of Wuyi rock tea and black tea).
In 2024, the company ranked first in China in both high-end tea sales revenue and the number of chain stores, achieving revenue of CNY2.14 billion ($300 million) and profit attributable to shareholders of CNY220 million. Bama Tea's brand value reached CNY31.3 billion last year. The company has been selected as one of the "Top 500 Chinese Brands" for nine consecutive years, and the Bama brand ranks first in brand awareness among Chinese chain tea brands.
In its prospectus, Bama Tea stated that it plans to steadily expand into overseas markets and develop offline channels in those markets. "The overseas tea market has huge development potential,” said Wang Wenli, chairman of Bama Tea. “We will prioritize Southeast Asia and countries participating in the Belt and Road Initiative as pilot markets for our overseas expansion, and will enter the European and American markets in due course in the future."