China snack firm Busy Ming to test investor appetite for consumer plays with Hong Kong IPO
Snack and drink retailer aims to raise up to US$428 million, but listing plan comes amid weak mainland domestic demand
Busy Ming Group, China’s largest snack and drink retailer, is seeking to raise up to HK$3.34 billion (US$428 million) in a Hong Kong initial public offering (IPO), testing investors’ appetite for consumer-oriented stocks.
The firm, which focuses on a value model, planned to sell 14.1 million shares at HK$229.60 to HK$236.60, according to its prospectus filed with the Hong Kong stock exchange on Tuesday. The stock is expected to begin trading on January 28.
Busy Ming owns two brands – Busy for You and Super Ming – which were founded by Yan Zhou in 2017 and Zhao Ding in 2019, respectively. Operating under a franchise model, it expanded to 19,517 stores in lower-tier markets as of September 30. The company’s oolong tea, priced at 1.9 yuan (US$0.30), was about half the price of similar mainland products, it said in a February presentation.
“This broad and deep store network coverage ensures affordable and high-quality products reach consumers across all city tiers,” Busy Ming said in the prospectus. It cited an industry report that said it was the fastest-growing chain store in China in 2024.
“Busy Ming’s business model has a low tolerance for errors,” said analyst Xinyao Criss Wang in a note last week on the investment intelligence platform Smartkarma. Upstream cost increases, downstream price wars or a decline in operational efficiency would break through the already thin profit barrier, Wang added.