Shares of China’s Sichuan Baicha Baidao, also known as ChaPanda, saw a steep decline in its debut on the Hong Kong Stock Exchange despite raising over $330 million in its initial public offering (IPO).
IPO and market debut: ChaPanda’s shares were initially priced at 17.50 Hong Kong dollars ($2.23) each, marking the city’s largest IPO so far in 2024. But on Tuesday, they opened 10.1% lower and closed 26.9% lower at 12.80 Hong Kong dollars ($1.63).
About the company: ChaPanda was founded in Chengdu in 2008. Today, it is China’s third-largest maker of freshly made tea drinks — mainly bubble tea — boasting 8,016 stores across 31 provinces, autonomous regions and major municipalities.
Market implications: Tuesday’s disappointing debut reflects broader issues in the Hong Kong stock market, which has been sluggish due to economic challenges and low investor confidence.
Industry impact:ChaPanda’s sinking share prices could signal caution for the bubble tea industry, particularly for other chains considering …