Hushang Auntie Plans Global H-share Offering, 46.8% Store Growth

Hushang Auntie, a well-known company, has announced its plans to launch a global offering of 2,411,340 H-shares. The offering will take place from April 28, 2025, to May 2, 2025. The shares will be priced between HKD 95.57 and HKD 113.12 per share, with the H-shares expected to begin trading on the stock exchange on May 8, 2025. The offering is structured with 10% of the shares allocated for sale in China Hong Kong and 90% for international sale, with an additional over-allotment option of up to 15%.

The company's rapid expansion is evident in its store network growth. By the end of 2022, Hushang Auntie had 5,307 stores. This number increased to 7,789 by the end of 2023, marking a 46.8% year-over-year growth. By the end of 2024, the store count further rose to 9,176, a 17.8% increase from the previous year. Notably, 99.7% of these stores are franchised.

In terms of gross merchandise value (GMV), the company has shown steady growth. In 2022, the GMV was RMB 60.68 billion. This figure rose to RMB 97.32 billion in 2023, a 60.4% increase. By 2024, the GMV reached RMB 107.36 billion, a 10.3% increase from the previous year.

Hushang Auntie plans to use the funds raised from the IPO to enhance its digital capabilities, develop new products, upgrade equipment, strengthen its supply chain, expand its store network, invest in marketing activities, and supplement its operating capital. The company aims to continue its strong presence in existing markets while expanding into more third-tier and lower-tier cities. This strategy is designed to solidify its leading position in the mid-range ready-to-drink tea market.