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Cao Li

Green Tea Group had a tepid trading debut in Hong Kong on Friday, as traders sidestepped its small stock sale in anticipation of the world’s largest initial public offering (IPO) so far this year next week.
Shares of the Hangzhou-based restaurant chain fell to end their first trading day at HK$6.29, a decline of 12.5 per cent from the HK$7.19 offer price. The company raised HK$1.21 billion (US$154.7 million) by selling 168 million shares.
Of the four IPO debuts since April 28 in Hong Kong, Green Tea was the first to flop, breaking the city’s recent streak of frenzied first-day transactions led by Auntea Jenny’s 75 per cent debut last week and the 40 per cent jump when Mixue Group began trading in March.
Traders are looking forward to the trading debut on Tuesday of Contemporary Amperex Technology (CATL), the world’s largest maker of battery packs for electric vehicles. CATL’s US$5.3 billion stock offer, priced at HK$263 per share at the high end of its price range, is the world’s largest this year, and the biggest sale in Hong Kong in four years.

Fifteen companies raised HK$17.7 billion in Hong Kong in the first quarter of this year, helping the city claw its way to the third spot in the global ranking of IPO destinations, according to KPMG’s data.
Investors have been showing strong interest in many of the recent IPO bids. Green Tea was oversubscribed by 317 times with its Hong Kong offering, according to the allotment results published by the company on Thursday night. But it is overshadowed by Auntea Jenny and Mixue, which were oversubscribed by 3,616 and 5,258 times, respectively.

The difference in first-day performance between Green Tea and several bubble tea chains recently listed in Hong Kong highlights the downshifting consumption trend in China’s consumer market, as the economy slows. While households are cutting back on dining out, many consumers, particularly younger ones, remain willing to spend on sweet or creamy tea drinks, which are often affordably priced.
Another Chinese restaurant chain Xiaocaiyuan saw its shares increase by merely 6 per cent on its debut trading in December. Shares of Haidilao International, China’s largest hotpot chain, have fallen 17 per cent in the past 12 months.
Green Tea received HK$847.38 million in gross proceeds from its IPO, while existing shareholders received HK$360 million from their stakes, according to its prospectus.
In 2024, Green Tea recorded much slower revenue growth at 6.9 per cent, compared with more than 50 per cent in 2023, which was supported by a strong consumption rebound after Covid-19 pandemic. Its same store sales in 2024 declined by over 10 per cent, compared with an increase of 26 per cent in 2023.
“Such decreases were primarily due to a general change in consumer behaviour to reduce expenses and frequencies of dining out given the current economic environment,” the prospectus said.
“We believe in the long-term strength of the company,” said Sheng Liu, managing director for private equity at Partners Group, a shareholder of Green Tea. “Its value-for-money proposition works well for Chinese people even at times when they are more careful with consumption.”
The chain boasts a value-for-money menu, with average spending per guest of 56.2 yuan (US$7.80) as of the end of 2024. It opened its first shop in Hong Kong in September, with spending ranging from HK$100 to HK$200 per person.
The Swiss private-equity giant’s executive viewed China’s food and drink industry as resilient because of the solid domestic demand.
“China’s government is very skilful in stimulating the economy and consumption, making us take the view that the China market is attractive,” Liu said.
Additional reporting by Aileen Chuang


Corrects number of shares sold and total proceeds raised in the second paragraph.


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An undated photograph of the signage of Green Tea Group, a Hangzhou-based restaurant chain. Photo: handout

Auntea Jenny’s co-founder and chairman Shan Weijun (right) at the company’s listing ceremony on the Hong Kong stock exchange on May 8, 2025. Photo: Aileen Chuang

The bronze statue of a bull in front of the Hong Kong stock exchange at Exchange Square in Central. Photo: Edmond So

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Shares of the restaurant chain began trading at HK$7.19 per share, before plunging 7 per cent to an intraday low of HK$6.69


Shares of the restaurant chain began trading at HK$7.19 per share, before plunging 7 per cent to an intraday low of HK$6.69.


Green Tea Group makes tepid debut in Hong Kong as traders gird for CATL’s IPO next week

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Shares of the restaurant chain began trading at HK$7.19 per share, before plunging 7 per cent to an intraday low of HK$6.69

Shares of the restaurant chain began trading at HK$7.19 per share, before plunging 7 per cent to an intraday low of HK$6.69