The eight horses tea company (06980) will be issuing 9 million H-shares for global sale from October 20th to October 23rd, and is expected to be listed on October 28th.

Ba Ma Tea Co., Ltd. (06980) announced that it will start its public offering from October 20, 2025 to October 23, 2025. The company plans to globally issue 9 million H shares, with 10% for public sale in Hong Kong and 90% for international sale. The offer price is set at HK$45-50 per share. Each board lot will consist of 100 H shares, and trading is expected to begin on October 28, 2025 (Tuesday) at 9:00 am (Hong Kong time) on the Stock Exchange. As of 2024, the group is the largest high-end tea supplier in China, ranking first in sales volume in the high-end Chinese tea sector and is a well-known Chinese tea brand. Based on the number of tea chain stores as of December 31, 2024, the group ranks first among Chinese tea suppliers; based on sales revenue in 2024, the group ranks first in the Chinese high-end tea market, as well as being the top in the Chinese Oolong tea and black tea markets. As of 2024, the group's Tieguanyin sales had ranked first in the country for more than 10 years, Wuyi Rock Tea sales had ranked first for 5 consecutive years, and black tea sales had ranked first for 4 consecutive years. According to the 2024 China Customer Satisfaction Index report released by Chnbrand, the group's "Ba Ma" brand ranks first in brand awareness among chain tea brands in China. Leveraging its nationwide offline store network and comprehensive online sales platform, the group provides consumers with high-quality Chinese tea products covering various categories such as Oolong tea, black tea, red tea, green tea, white tea, and yellow tea, as well as tea ware, tea snacks, tea drinks, and other non-tea products. The net proceeds from the global offering (after deducting estimated underwriting commissions and other expenses payable by the group for the global offering) are expected to be approximately HK$368 million (assuming an indicative offer price range of HK$45.0 to HK$50.0 per share with a midpoint of HK$47.5 per share). The group plans to use the net proceeds from the global offering as follows: (1) Approximately 35.0% is expected to be used for expanding the group's production base and constructing new production facilities. This includes approximately 11.3% for expanding and upgrading the group's Wuyishan production base, 10.3% for expanding and upgrading the group's Anxi production base, and 13.4% for establishing a new production base in Yunnan Province. (2) Approximately 20.0% is expected to be used to enhance the group's brand value and expand the group's product portfolio. This includes approximately 17.0% for enhancing the group's brand value through various branding and marketing plans, as well as developing sub-brands, and 3.0% for expanding the product portfolio, including investment in R&D for new products. (3) Approximately 15.0% is expected to be used to provide funds for the expansion of the group's direct-operated offline store network, focusing on opening more stores (such as flagship stores) to enhance the group's brand value. (4) Approximately 10.0% is expected to be used to enhance the group's digital operational capabilities. This includes approximately 4.0% for improving the digital level of the group's supply chain, 2.6% for improving the digital level of customer end operations, and 3.4% for building a digital command system. (5) Approximately 10.0% is expected to be used for acquiring or investing in participants in the Chinese tea industry. (6) Approximately 10.0% is expected to be used for working capital and other general corporate purposes.