New stock news | Eight Horses Tea (06980) ends its IPO. The total subscription amount reached HKD 8.53 billion, 1896 times oversubscribed.

Chinese renowned tea supplier Eight Horses Tea (06980) was listed for public offering from October 20, 2025 to October 23, 2025, and the latest subscription has ended. As of noon on October 23, Eight Horses Tea has received at least HK$85.3 billion in margin financing from securities firms, based on a public offering of HK$45 million with an oversubscription of 1896 times. Eight Horses Tea plans to issue 9 million shares, with 10% for public offering, at a price range of HK$45 to HK$50 per share, raising up to HK$450 million, with a minimum board lot of 100 shares and an entry fee of HK$5050.4 per board lot. The company is expected to be listed for trading on October 28, with Huatai International, Agricultural Bank International, and TF International as its joint sponsors. According to the prospectus, Eight Horses Tea is a well-known tea supplier in China, with products covering six major categories of Chinese tea as well as tea ware, tea food, and other non-tea products. Based on high-end tea sales revenue in 2024, the company ranked first nationwide. Additionally, based on the number of tea chain stores as of December 31, 2024, the company ranked first among Chinese tea suppliers; and based on sales revenue in 2024, the company also ranked first in the Chinese oolong tea and black tea markets. As of 2024, the company's sales revenue for Tieguanyin tea has ranked first nationwide for over 10 years; Wuyi rock tea sales revenue has ranked first for 5 consecutive years; and black tea sales revenue has ranked first for 4 consecutive years. According to sales revenue, the high-end tea market in China is showing rapid development, with the market size increasing from approximately RMB 89 billion in 2020 to approximately RMB 103.1 billion in 2024, with a compound annual growth rate of about 3.7%. It is expected to reach approximately RMB 135.3 billion by 2029, with a compound annual growth rate of about 5.6% from 2024 to 2029. With its advantages in brand value, tea making techniques, product development, scale operation, channel operation, cross-regional expansion, supply chain management, digital sales platforms, and talent, the company has achieved the market position of "number one in high-end Chinese tea sales nationwide." As a supplier of full-category tea products with a comprehensive sales network and cross-regional operations, Eight Horses Tea will continue to uphold its corporate mission and values, consistently producing quality tea and opening quality stores, actively promoting technological innovation and digital empowerment, expanding store coverage to reach more cities and regions, enhancing the overall brand value of the company and its sub-brands, steadily moving towards the vision of becoming the world's leading tea company. According to the prospectus, Eight Horses Tea plans to allocate approximately 35.0% of the proceeds from the global offering for expanding and constructing new production bases; approximately 20.0% for enhancing the company's brand value and expanding the product portfolio; approximately 15.0% for funding the expansion of the company's directly operated offline store network, focusing on opening more stores to enhance brand value, such as flagship stores; approximately 10.0% for improving the digital operation level of the business; approximately 10.0% for acquiring or investing in participants in the Chinese tea industry; and approximately 10.0% for operating funds and general corporate purposes.