IPO News | Bama Tea (06980) Closes the IPO and Margin Subscription Amount Reached HK$85.3 billion, overbought 1,896 times

The Zhitong Finance App learned that Bama Tea (06980), a well-known Chinese tea supplier, offered shares from October 20, 2025 to October 23, 2025, and recently closed the subscription. As of noon on October 23, Puma Tea had received a margin loan of at least HK$85.3 billion from brokerage firms, which had overbought 1,896 times over the amount raised in the public sale of HK$45 million.

Puma Tea Industry plans to issue 9 million shares, of which the public sale accounts for 10%, with an offering price of HK$45 to HK$50 per share, raising up to HK$450 million, 100 shares per lot, and an entry fee of HK$5050.4 for the first hand. The company is expected to be listed for sale on October 28, with Huatai International, Agricultural Bank International and Tianfeng International as co-sponsors.

According to the prospectus, Bama Tea is a well-known tea supplier in China, and its products cover all six major categories of tea in China, as well as non-tea products such as tea utensils and tea food. According to the 2024 high-end tea sales revenue, the company ranked first in the country. At the same time, according to the number of tea chain stores as of December 31, 2024, the company ranked first among Chinese tea suppliers; in terms of 2024 sales revenue, the company also ranked first in the Chinese oolong tea and black tea market. As of 2024, the company's Tieguanyin sales revenue ranked first in the country for more than 10 consecutive years; Wuyi rock tea sales revenue ranked first in the country for 5 consecutive years; and black tea sales revenue ranked first in the country for 4 consecutive years.

In terms of sales revenue, China's high-end tea market is showing a rapid development trend. The size of China's high-end tea market grew from about RMB 89 billion in 2020 to about RMB 103.1 billion in 2024, with a compound annual growth rate of about 3.7%. It is expected to reach about RMB 135.3 billion in 2029, and the compound annual growth rate from 2024 to 2029 is about 5.6%. With the advantages it has established in terms of brand value, tea making technology, product development capabilities, large-scale management capabilities, channel operation capabilities, cross-regional expansion capabilities, supply chain management capabilities, digital sales platforms, and talent teams, the company has achieved the “No. 1 sales volume for high-end Chinese tea in the country” market position.

As a supplier of all types of tea products with an omnichannel sales network and cross-regional operations, in the future, Bama Tea will continue to adhere to the corporate mission and values, continue to make high-quality tea and open high-quality stores, actively promote scientific and technological innovation and digital empowerment, expand store coverage, cover more cities and regions, enhance the comprehensive brand value of the company's brands and sub-brands, and make steady progress towards the vision of “becoming the world's number one tea company”.

According to the prospectus, Bama Tea Industry plans to use about 35.0% of the proceeds from the global sale to expand production bases and build new production bases; about 20.0% are expected to enhance the company's brand value and expand the product portfolio; about 15.0% are expected to fund the expansion of the company's directly managed offline store network and focus on opening more stores to enhance brand value, such as flagship stores; about 10.0% is expected to increase the level of digitalization of business operations; about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in participants in the Chinese tea industry; and about 10.0% is expected to be used to acquire or invest in It will be used for working capital and general corporate purposes.