Earlier today (30 June), tea chain Nayuki went public on the Hong Kong stock market, becoming the first ‘new-style tea’ brand to list. ‘New-style tea’ (新式茶饮) describes a tea-based drink which often combines fresh fruit with a creamy cheese topping. It is usually less sweet than bubble tea and is often marketed as a healthier alternative.
Nayuki, known as Naixuedecha in Chinese 奈雪的茶, is a leading ‘new-style tea’ brand which was set up in Shenzhen in 2015. It now has over 400 stores in China and expanded to Japan and the US in 2020. Nayuki’s innovative flavours, fresh ingredients, low-sugar options, and trendy in-store decoration have made it popular, especially among China’s younger generations.
According to the company’s prospectus, Nayuki is the second most popular high-end fresh tea brand in China with 18.9% of the market share. HeyTea holds 27.7% of the market share due to its popularity in first- and second-tier cities. Data from iiMedia Consulting shows that HeyTea had the highest consumer awareness of all new-style tea brands in Q2 2020, accounting for 43%.
On the first day of listing, Nayuki closed at HK$17.04 per share. However, due to concerns about performance and efficiency, this marks a 14% drop from the issue price of HK$19.8. The chain’s market value was calculated at HK$29.2 billion.