Two of China’s biggest tea-beverage chains are said to be eyeing listings on the Hong Kong stock exchange next year that may raise a total of about US$1 billion.

HEYTEA, famous for its fruit-infused bubble tea topped with cheese, and key rival Naixue’s Tea, have both held discussions with bankers about possible initial public offerings in Hong Kong, Apple Daily has learned. Naixue had originally planned for a U.S. listing but was hindered by new accounting rules and restrictions imposed on Chinese companies amid escalating tension between Washington and Beijing.

Neither company would comment when contacted by Apple Daily.

Founded in 2012 by entrepreneur Neo Nie at the age of 21, HEYTEA has 658 stores in mainland China and overseas, having secured multiple rounds of funding, including from internet giant Tencent and on-demand food delivery service Meituan.

At its peak, the company had eight stores in Hong Kong but closed all but one after becoming a target of anti-China protesters during last year’s social upheaval.

Naixue has 349 shops globally, including one at the Peak in Hong Kong. It also has plans to enter the American and Japanese markets, although these have been stalled by the coronavirus pandemic.

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