Bama Tea (HKG:6980) has launched its initial public offering in Hong Kong, aiming to raise up to HK$450.0 million from the deal.
The premium tea producer is offering as many as 9 million H-shares at an indicative price range of HK$45.00 to HK$50.00 each, according to a Hong Kong bourse filing on Monday.
The offering comprises 900,000 shares for Hong Kong investors and 8.1 million shares for international buyers, subject to reallocation.
Pricing is expected to be determined on or before Oct. 24, with results of allocation to be announced Oct. 27, ahead of the company's trading debut on Oct. 28.
Net proceeds will be used primarily to expand production capacity, enhance brand value and product development, and grow its self-operated store network. They will go toward digital transformation, strategic acquisitions, and working capital as well.
Huatai Financial Holdings (Hong Kong), ABCI Capital, and TFI Capital are serving as joint sponsors for the deal.
Huatai Financial, ABCI Capital, and TFI Securities and Futures are also acting as sponsor-overall coordinators, overall coordinators, and joint global coordinators.
They are joined by CLSA, Shenwan Hongyuan Securities (H.K.), China Galaxy International Securities, UOB Kay Hian (Hong Kong), SPDB International Capital, CMBC Securities, AVICT Global Asset Management, and Funde Securities as joint bookrunners and joint lead managers.