China tea specialist joins IPO rush in city

Three companies opened their retail books yesterday, aiming to raise a combined HK$950 million in initial public offerings in Hong Kong.

Pu'er Lancang Ancient Tea is offering 21 million shares with a target to raise as much as HK$297 million. The minimum investment is HK$2,860 per board lot.

If successful, the tea firm will become the only Pu'er specialist and the second tea producer to be listed in the city following Tenfu (6868) in 2011.

Pu'er is a type of fermented tea traditionally produced in Yunnan and takes its name after a town in the province.

Lancang Ancient Tea, which traces its roots back to 1966, was the third largest of its kind in China in terms of revenue last year, with a market share of 2.4 percent, according to a Frost & Sullivan report. That compared to a second place it was ranked in 2021.

The runner-up now is expected to be China Tea under China's state-run food group Cofco International, with a market share of 4.4 percent in 2022. The top place belonged to Tae Tea, with a 12.6 percent market share.

Lancang's core brand Lan Cang Gu Cha offers two lines, 1966 and Tea Mama.

The 1966 classic line targets connoisseurs and collectors while Tea Mama is a more affordable line of tea discs, bags and disposable tea cup and includes non-Pu'er products.

A third product line called Iland Tea was launched in July last year for middle-class customers.

Meanwhile, gold exploration, mining and processing company Persistence Resources aims to raise up to HK$375 million by selling 500 million shares.

The minimum investment is HK$3,787 per board lot of shares.

And Chinese biopharmaceutical firm HighTide Therapeutics is planning to raise up to HK$278 million by providing 24.19 million shares.

The three companies are scheduled to debut on December 22.