(Yicai Global) June 18 -- Nayuki Holdings has set its sights on raising as much as HKD5.9 billion (USD760 million) when the Chinese fruit tea chain goes public on the Hong Kong stock exchange at the end of the month.

Nayuki is pricing its shares at between HKD17.20 (USD2.20) and HKD19.80, according to the 21st Century Business Herald. The Shenzhen-based firm plans to issue 232 million shares on the global market and 25.7 million shares in Hong Kong, Nayuki said at a press conference yesterday.

The teahouse chain's initial public offering is expected to be on June 30, making it the first modern fruit tea brand to list in Hong Kong. Cornerstone investors include UBS Asset Management and a number of top Chinese publicly-offered funds, it said.

If the shares sell at the maximum offer price, founding couple Peng Xin and Zhao Lin, who own 977 million shares, could see the value of their holdings surge to over HKD19 billion (USD2.4 billion), propelling them to the equivalent of 194th position on the 2020 Forbes China Rich List.

Around 70 percent of the funds raised will be used to expand its teahouse chain and increase market penetration, Nayuki said. Another 10 percent will go toward strengthening technological capabilities so as to raise operation efficiency. A further 10 percent will be spent on improve the management of supply chains and the rest will be used as general working capital.

Despite rapid expansion in recent years, Nayuki is already turning a profit. Last year it raked in profit of CNY16.6 million (USD2.6 million) compared with losses of CNY11.7 million in 2019, according to its IPO prospectus. It also recorded a 22.2 percent jump in revenue to CNY3.06 billion.

Founded in 2015, Nayuki operates more than 489 tea outlets in 66 cities across China. It is the second-largest teahouse chain in the country with 18.9 percent market share last year, according to China Insights Consultancy. Nayuki also has one teahouse in both Hong Kong and Japan.

Editor: Kim Taylor