Naixue’s Tea, one of the biggest bubble tea chains in China, is considering an initial public offering in the U.S. that could raise as much as $400 million, according to people familiar with the matter.
The company, also known as Nayuki, is working with advisers on the potential first-time share sale that could take place as soon as this year, said the people, who asked not to be identified as the discussions are private. Details of the offering including timeline, size and listing venue could change as the novel coronavirus outbreak is weighing on market sentiment, the people said.
Naixue, started by Shenzhen Pindao Restaurant Management Co. in 2010, has more than 230 stores across China, according to its website. The chain sells fresh-fruit tea — some with cheese foam on the top — as well as cold brew tea and baked goods. HEYTEA, another popular bubble tea chain, is among its biggest rivals in the country.
A representative for Shenzhen Pindao didn’t immediately respond to requests for comment.