Bama Tea, a leading Chinese high-end tea brand, has received regulatory approval from the China Securities Regulatory Commission (CSRC) to proceed with its Hong Kong IPO and the full circulation of its domestic unlisted shares, marking a significant step forward in the company’s fourth attempt to enter the capital market after multiple setbacks on the A-share market.
Bama Tea Co., Ltd. plans to issue no more than 29.1334 million ordinary shares for overseas listing and go public on the Hong Kong Stock Exchange, according to a notice released by the International Cooperation Department of the CSRC on July 17.
In addition, the notice shows that 106 shareholders of Bama Tea intend to convert a total of 43.987 million unlisted domestic shares into overseas-listed shares to be traded on the Hong Kong Stock Exchange.
Among the shareholders, founders Wang Wenbin and Wang Wenli hold 4.8214 million shares and 3.8715 million shares, respectively. Among institutional investors, Tianjin Changfeng Management Consulting Partnership (Limited Partnership) holds 5.22 million shares, and Tianjin Tiantu Xinghua Equity Investment Partnership (Limited Partnership) holds 3.6 million shares.
The notice stipulates that Bama Tea must report its issuance and listing status within 15 working days after completing the overseas issuance and listing. If the company does not complete the overseas issuance, listing, and share conversion within 12 months from the date of the filing notice, it must update its filing materials if it wishes to continue the process.
Interestingly, also on July 17, Bama Tea’s prospectus submitted to the Hong Kong Stock Exchange on January 17 expired, having surpassed the six-month validity period without completing the listing. Under current rules, the company can still continue the listing process if it updates its financial data and resubmits the application within the next three months.
In fact, this is the fourth time Bama Tea has stumbled in its efforts to go public, with the first three attempts to list on the A-share market unsuccessful. As early as 2013, Bama Tea intended to list on the Shenzhen Stock Exchange’s SME board but failed. In 2021, the company shifted its focus to the ChiNext board, underwent three rounds of inquiries and prospectus updates, but ultimately withdrew its application at the last moment.
In May 2022, the Shenzhen Stock Exchange announced that Bama Tea had voluntarily withdrawn its ChiNext application. Market sources at the time suggested that the withdrawal was because the company’s “marketing-heavy, R&D-light” business model was incompatible with the ChiNext board’s positioning.
In 2023, Bama Tea tried again, this time aiming for the Shenzhen Stock Exchange’s Main Board, but once again terminated the application, citing “changes in capital markets and regulatory environment.” In September of the same year, the Shenzhen Stock Exchange officially terminated its Main Board review of Bama Tea’s listing.
On January 17, 2025, after multiple failed attempts to list on the A-share market, Bama Tea turned to the Hong Kong Stock Exchange, submitting its listing application with Huatai International, ABCI Securities, and TF International acting as joint sponsors.
According to its official website, Bama Tea traces its origins back to 1736. Its prospectus also states that Bama Tea is the leader in China’s high-end tea market, ranked number one in high-end Chinese tea sales, and one of the most recognized tea brands in China.
As of October 31, 2024, the company had over 3,500 chain stores nationwide. A Frost & Sullivan report noted that by the end of 2023, Bama Tea ranked first in China’s tea market by number of tea chain specialty stores.
Bama Tea’s revenue and net profit both grew from 2022 to 2023 and the first three quarters of 2024, though the growth rates have clearly slowed. Specifically, in 2022, 2023, and the first three quarters of 2024, Bama Tea recorded revenues of RMB 1.818 billion, RMB 2.122 billion, and RMB 1.647 billion, respectively; net profits were RMB 166 million, RMB 206 million, and RMB 208 million, respectively.