Chabaidao's IPO Flops in Hong Kong, Shares Plunge Nearly 40%

Chinese bubble tea giant Chabaidao experienced a severe drop in share value during its Hong Kong debut, marking the city's largest IPO of 2024 with a disappointing start.

• Chabaidao, a leading Chinese bubble tea chain, saw its shares plummet by up to 40% on its first trading day in Hong Kong.
• The IPO, which was the largest in Hong Kong for 2024, raised about HK$2.59 billion but faced weak investor sentiment and competitive pressures.
• Analysts attribute the poor performance to a highly competitive market and economic uncertainties impacting consumer spending in China.
• Despite the IPO's size, the public offer was under-subscribed, with only 0.5 times the shares offered being taken up.
• The company's revenue for 2023 was reported at 5.7 billion yuan, with a gross profit of 1.96 billion yuan, indicating growth despite market challenges.

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