Customers are waiting for orders at the Milk Tea Store (Good Me) in Fuzhou, Fujian.
Chen Xiaoke/VCG through Getty Images
Wang Yun’an, 38 -year -old founder of Chinese tea bubble, is at the top to become a billionaire as his company prepares for an initial public offer in Hong Kong that can estimate the business over $ 20 billion ($ 20 billion ($ 2 billion , $ 6 billion).
Wang, who is the chairman and chief executive of the company, now has a net value of $ 964 million, mainly based on a share on Taizhou, Zhejiang Headquered, according to Forbes estimates. The company intends to increase $ 1.6 billion HK, with the sale of $ 158.6 million in a series of $ 8.68 to HK to $ 9.94 per piece, according to Tuesday’s stock market deposit.
At the top of this range, the sale of shares will be worth up to $ 23.2 billion. Wang will have more than 40%share. Five cornerstone investors, including the Chinese web Giant Tencent and the LVC private shares, agreed to acquire 63.7 million shares or 40.2% of the IPO. The public trading of shares is expected to begin on February 12, according to its information.
The company plans to use revenue in digitizing its business, invest in its supply chain and strengthen marketing.
But Kenny Ng, a Hong Kong -based mobile -based mobile general at Everbright Securities, was heard about the forthcoming shares. Investors are likely to be aware of the struggles of fellow Milk and Naixue Milk Milk companies, he says in messages sent via WeChat.
Both companies are listed in Hong Kong and their performances have been affected by the competition by cutting in the China bubble tea market. Chapanda’s shares retreated almost 30% on the first day of the company’s negotiation in April 2024. The milk tea manufacturer has negotiated below the IPO price since then.
The guming expansion strategy is similar to Chapanda. Using a franchise model, the company is exploiting a network of about 10,000 stores throughout China, hoping to attract consumers’ attention with as many warehouses as possible, according to its newsletter. Like its competitors, Guming’s Good Me Brand sells drinks such as Tapioca bubble tea or freshly ground tea mixed with fruit. They invoice them between 10 yuan ($ 1.40) in 20 yuan per cup, shows the newsletter.
“Many milk tea manufacturers are based on the opening of new stores for future growth,” Ng says. “This reflects the intense competition in the industry. In addition, amid fluctuations in the overall economy, the market does not give the milk tea high values.”
Guming did not respond to requests by email for comments.
After graduating from Zhejiang Sci-Tech University with a degree in Engineering, Wang opened the first Me Good Me store in Daxi’s home in Zhejiang province in 2010, according to local media reports.
He initially competed in the business and thought about closing the store, local media reported. But after changing the recipes and renovation of storage, customers eventually came. In mid -2011, Wang started finding franchisees. With them, it expanded to southern China.
In 2020, the sidewalk increased the only known external funding. Investors, including Honghan (formerly known as Sequoia China) and the US investment company Coatue Management, put 674 million yuan in return for a combined 13.2%share, according to its information.
Today, the company has a fort in Zhejiang, which represents more than one fifth of its store network, according to the newsletter. During the first nine months of 2024, or the latest financial results available, guming revenue increased by 15.6% annually to 6.4 billion yuan. Its profit was 1.1 billion yuan, increased by 11.8% from the same period last year, the newsletter shows.
The company has recognized possible growth concerns.
“A recent general slowdown in the industry and the increased competition of the industry has slowed the pace of new opening of our stores and has led to the reductions of some of the operations of our stores,” he writes his newsletter. The company says it still intends to grow by opening more stores and enhancing the density of its store network in China.
