Mainland China restaurant chain the Green Tea Group has secured approval from the Hong Kong Stock Exchange (HKEX) for an initial public offering (IPO) on its fifth attempt in four years.
The company, which first applied for a Hong Kong listing in March 2021, is yet to announce the amount it aims to raise, as reported by the South China Morning Post.
A China Securities Regulatory Commission notice dated 28 March 2025 reveals that the chain plans to offer almost 213 million ordinary shares in Hong Kong.
Chinese firms must gain approval from this regulatory body before pursuing listings abroad.
Green Tea Group intends to utilise the funds from the IPO to expand its network of restaurants, set up a centralised facility for food processing, enhance its information technology system along with associated infrastructure, and bolster its working capital.
The company applied in December 2024 to leverage the late-year revival in the IPO market.
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By GlobalDataEstablished in 2008, Green Tea Group operates 489 restaurants in 24 cities in mainland China, and made its Hong Kong debut in September 2024 at Hysan Place, Causeway Bay.
Despite accelerating its pace of new store openings, Green Tea Group’s revenue saw a modest 7% increase in 2024 to HK$3.8bn ($521m) – down from its rise of more 50% in 2023 when consumption surged post-pandemic.
The company also reported a more than 10% decline in same-store sales in 2024 – a sharp contrast to the 26% rise in 2023.
It does not expect the ongoing US-China trade conflict to affect it directly, due to lack of ties to the US, but acknowledges potential indirect impacts on its business if the dispute harms the economy and changes consumer habits.
