SexyTea is Planning to Conduct an IPO in HK in 2024, Sources Say

According to public information, Hunan Chayue Culture, known as "SexyTea", has selected China International Capital Corporation and Morgan Stanley to handle its Hong Kong IPO matters, aiming for a Hong Kong IPO in 2024. On March 14th, in response to the listing rumors, a spokesperson for SexyTea stated, "We currently do not have a definitive plan."

This marks the third time within six months that SexyTea has been rumored to be preparing for a Hong Kong IPO. In comparison to the previous two rumors, this latest speculation further clarifies SexyTea's listing timeline.

Established in Changsha in 2014, SexyTea is a well-known local tea beverage brand. In December 2021, it expanded beyond its Hunan base, entering Wuhan, Nanjing, and Chongqing, causing queues in multiple locations. To date, SexyTea has completed four rounds of financing, with investors including Tiantu Capital, Shunwei Capital, Yuansheng Capital, Source Code Capital, and Wuyuan Capital.

Data indicates that as of March 14th, SexyTea has approximately 659 directly operated stores, including 536 stores under the main brand SexyTea, 91 stores under Yuanyang Coffee and 32 stores under Good Morning. In comparison, according to the prospectus, as of September 2023, Heytea had 36,153 stores, and Auntie Sweet had 7,297 stores in Shanghai. By the end of 2023, GUMI stores numbered 9,001, and Chabaidao stores numbered 7,801.

In the tea beverage sector, there are currently approximately 23 brands with over a thousand stores. SexyTea has fewer stores, a fact closely linked to its persistent direct operation model and its base in Hunan. In terms of market layout, in addition to the main SexyTea brand's presence in Wuhan, Chongqing, Nanjing, Wuxi, and Hefei, stores for Yuanyang Coffee and Good Morning are only located in Changsha. Regarding its business model, SexyTea has repeatedly stated that the current direct operation model is more suitable for its own development.

Since Naixue's successful listing on the Hong Kong Stock Exchange on June 30, 2021, becoming the "first stock of new-style tea beverages," tea beverage companies have sparked a wave of "listing fever": On January 2, 2024, Heytea and GoodMe both submitted applications to the Hong Kong Stock Exchange; on February 14, Auntea Jenny submitted its Hong Kong stock listing application, and in August of last year, ChaPanda took the lead in pursuing a Hong Kong listing; other brands such as CHAGEE and Auntea Jenny were also rumored to have listing plans, but as of now, the "second stock" has not yet emerged.