On April 23, Chabaidao made headlines when it was listed on the Hong Kong Stock Exchange, becoming the second listed company in the new tea beverage industry. Despite raising nearly HK$2.6 billion, it faced a challenging first day of trading as its stock price took a significant plunge of over 35%.
Chabaidao, a well-known freshly made tea brand in China with a strong operating performance, attracted institutional investors with its impressive financial indicators. However, its IPO pricing valuation was deemed high, leading to the stock price drop on its debut.
Industry experts believe that Chabaidao’s stock performance will have a ripple effect on other new tea beverage companies planning to go public. Companies like Mixue Bingcheng and Gu Ming are also eyeing listing, but may need to reassess their valuations and fundraising plans in light of Chabaidao’s experience.
The new tea beverage market is highly competitive, with companies facing challenges in differentiating their products and services. Investors may now scrutinize the sustainability and profitability of businesses in this sector more closely before investing.
The road to IPO for new tea beverage companies has become more challenging, with Chabaidao’s listing serving as a cautionary tale. As companies seek capital empowerment to fuel their growth, they must focus on sustainable development to succeed in the dynamic market.
In the wake of Chabaidao’s stock price fluctuations, new tea beverage companies may need to adopt a more pragmatic approach towards their IPOs, taking into account market sentiment and investor confidence. Demonstrating a strong business model and profitability will be crucial for future listings in the industry.
The listing of Chabaidao has undoubtedly sparked discussions and raised awareness among investors and industry players. As the new tea beverage sector continues to evolve, companies will need to navigate challenges and demonstrate resilience to thrive in the competitive market.
Editor in charge: Wu Taifeng