Chinese tea-drink chain Chagee is considering a Hong Kong listing that could raise several hundred million US dollars, Bloomberg reported, citing people familiar with the matter.
The sources said the company has held initial discussions with banks about a potential share sale that could take place as early as this year, according to the report.
The talks remain ongoing, and Chagee may ultimately decide not to proceed with a Hong Kong offering, the people added. Any listing plan would also require approval from the China Securities Regulatory Commission.
Chagee went public in the United States in April last year, but its shares have since fallen more than 50 percent, leaving the company with a market capitalisation of about US$2.5 billion (HK$19.5 billion).
Its third-quarter revenue fell 9.4 percent year-on-year to about US$450 million, while net profit slid more than 35 percent, weighed down by a price war.
Responding to inquiries from Chinese mainland media, Chagee said it currently has no plans for a Hong Kong initial public offering.
