China tea chain ChaPanda sinks in Hong Kong IPO as market sours

'Bad' sentiment may affect rivals' hopes to drum up cash for expansion

20240422 ChaBaiDao

A ChaBaiDao shop -- as ChaPanda is also known -- in Shanghai. The company has said it will spend over half its IPO proceeds improving overall operations and strengthening supply chains. © Reuters

PEGGY YE, Nikkei staff writer

HONG KONG -- Sichuan Baicha Baidao, a Chinese low-priced tea chain also known as ChaPanda, made a disappointing debut on the Hong Kong market on Tuesday, casting a shadow on authorities' hopes for revitalizing initial public offering activity. 

The shares opened at 15.74 Hong Kong dollars, 10% below its IPO price of HK$17.50. The price went on to drop almost 40% in midday trading and closed at HK$12.80, down 27%.

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