This Freshly Brewed Stock Aims To Ride The Bubble Tea Bubble

This Freshly Brewed Stock Aims To Ride The Bubble Tea Bubble
Andrew Rummer

over 2 years ago1 min

A new addition to Hong Kong’s stock market aims to ride the rapidly inflating market for bubble tea, the sugary Taiwanese beverage that marries tea with chewy balls of tapioca.  

Nayuki Holdings shares (ticker: 2150) will start trading on June 30 after the company raised $650 million in an initial public offering (IPO) this week. The Shenzhen-based firm will be valued at nearly $4.5 billion after the retail-focused part of the IPO was reported to be more than 400 times oversubscribed. 

With the global bubble tea market forecast to expand from $2 billion in 2019 to $3.4 billion by 2027, Nayuki shares will offer one of the few ways for smaller investors to bet on the beverage’s growing popularity. 

Still, the company’s financials are far from rosy. According to Bloomberg, Nayuki has raised about $850 million across a series of funding rounds since 2017, yet has only brought in $172 million in operating cash during that time. It reported a loss of $31 million for 2020 on revenue of $480 million. 

And it might not be the only listed bubble tea stock for long. HeyTea, which boasts it’s “combining salt cheese with fresh tea in an ingenious way,” may also IPO before the end of the year, according to reports. 

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