Since the second half of 2024, it has become a trend for Consumer companies to go public Overseas.
It is understood that since 2025, consumer enterprises such as tea beverage brands... $MIXUE GROUP (02097.HK)$ 、$GUMING (01364.HK)$、$AUNTEA JENNY (02589.HK)$、$Chagee Holdings (CHA.US)$Many companies are going public on the Hong Kong and US stock markets, and numerous consumer enterprises such as Laoxiangji, Yujian Xiaomian, Green Tea, and Mingming Hen Mang are also in the listing process. Notably, many of these are new consumer enterprises.
Regarding the current wave of consumer enterprises listing overseas, Analysts pointed out that under the policies promoting consumption, on one hand, the past few years saw a peak in private equity investment in consumer sectors, and at this time, the institutions behind them have exit demands, especially a pressing need for listings driven by gamble agreements; on the other hand, leading consumer enterprises currently face internationalization demands, and going public supports their international expansion and brand enhancement, enabling the integration of more resources. Furthermore, the listing of consumer enterprises, especially new consumer enterprises, is a necessary measure to align with changes in consumer trends.
Consumer enterprises are intensively going public.
Consumer enterprises are迎来上市高潮. For example, in the new-style tea beverage brand sector, Gu Ming went public in February, Mixue Group in March,霸王茶姬 in April in the US, and沪上阿姨 in May in Hong Kong, resulting in four companies in the same industry going public in just four months.
Moreover, starting from 2025, the Hong Kong stock market will also see...$NUMANS (02530.HK)$、$BLOKS (00325.HK)$、$SOFT INTL (02569.HK)$Several consumer companies have already gone public, and currently, another dining enterprise is in the IPO period, about to launch on the Hong Kong stock market. Additionally, there are many consumer companies in Hong Kong that have submitted applications, such as Lao Xiang Ji, Yu Jian Xiao Mian, Ming Ming Hen Mang, Bo Xi He, $GREEN TEA GROUP (06831.HK)$ , Liu Liu Guo Yuan, Ka You, Ba Ma Cha Ye, and others.$Three Squirrels Inc. (300783.SZ)$
Wen Zhihong, an expert in the chain operation industry and general manager of Hehong Consulting, stated in an interview with the Securities Times that consumer enterprises such as Dining, driven by their development strategy needs, seek financing to enhance brand influence, and through public listings, they can integrate more resources.
The Hong Kong stock market has maintained the rebound momentum since the second half of last year, with overall valuations showing a significant increase compared to the previous years' sluggish period, which helps relevant enterprises achieve relatively better valuations and benefit consumer enterprises in financing. Data shows that Hong Kong stocks$Hang Seng Index (800000.HK)$have accumulated an increase of more than 10% this year, and if calculated from the low point last year, the Hang Seng Index has seen a maximum increase of over 50%, breaking free from the previous years of continuous downturn.
In this regard, Lai Yeye, chief strategy Analyst of Pudong Development Bank International, stated that this year's Hong Kong IPO characteristics are driven by a "Technology + Consumer" dual engine. Whether in terms of IPO quantity or fundraising amount, the Consumer Industry (including discretionary and non-discretionary consumption) stands out. In recent years, "new consumption + hard technology" has become the new engine for Hong Kong IPOs. New consumption and service-oriented consumption cover niches such as trendy toys, new tea drinks, pets, Gold Trinkets, Cosmetics, and medical beauty.
However, the consumer enterprises that are currently listed or preparing to go public are mostly related to "new consumption," such as new-style tea brands collectively heading to the Capital Markets, primarily catering to young people's new lifestyles; Mingming is busy meets the one-stop snack shopping needs of young people; companies like Blokus are entering the trendy toy and Blind Box sectors, referred to as "China's version of LEGO."
"The demand from consumers for branding, personalization, and high quality has driven the rapid rise of new consumption brands. Consumer enterprises choosing to go public overseas, especially on the Hong Kong stock market, indicates that these companies aim to enhance brand awareness through the Capital Markets, expand their overseas market presence, and further achieve Global development," said Huang Lichong, president of Huisheng International Capital.
Going public has become an inevitable choice.
There are many deep-rooted reasons behind the intense entry of consumer companies into the Hong Kong stock market in this round.
According to Huang Li Chong, the clustering of consumer companies going public overseas, especially in the Hong Kong stock market by 2025, is partly due to the shorter listing cycle and more transparent processes in the Hong Kong stock market, as well as a more mature valuation system for consumer companies, where leading brands find it easier to gain market recognition and funding support; on the other hand, many consumer companies have brought in VC/PE investments during their growth process and signed bet agreements (such as performance commitments, listing deadlines, etc.), VC/PE funds are facing pressure for capital retrieval, pushing companies to accelerate their listing in Hong Kong for quick liquidity realization, as many companies' redemption periods have already passed, and going public is an inevitable choice.
It is noteworthy that among the consumer companies seeking to go public in this round, the number of dining companies is the highest. In this regard, Yu Lingqu, Executive Director of the Financial Development and State-owned Enterprises Research Institute at the China (Shenzhen) Comprehensive Development Research Institute, believes that the dining industry in our country has entered a new stage of branding, standardization, chain development, and supply chain optimization, where leading dining companies can enhance brand recognition and expand market share and influence through listing, while also utilizing the capital markets to obtain resources for better expansion in domestic and overseas markets, constantly improving their supply chain systems, and enhancing operational efficiency and market competitiveness.
Adapting to new changes in consumer trends.
With consumer companies continuously entering the capital market, the recognition of these companies by capital is also increasing, especially the anticipation for their future internationalization plans, among which some companies with new consumer attributes are particularly noted. This is also an inevitable measure in response to changes in consumer trends.
It is worth noting that there is currently no unified definition of what constitutes "new consumption," but it is generally believed that it should have characteristics such as incrementality and upgrading, either innovating business models or bringing innovative "methods," and it should integrate new technologies such as digital technology to meet emotional values.
Among them, many of the already listed and newly listed "new consumption" companies have seen their stock prices continually rise. Taking this year's listed rising star in the tea drink sector, Mixue Group, as an example, during the subscription stage, its public offering subscription amount continuously set new records for Hong Kong IPO subscriptions, ultimately reaching a record over 1.8 trillion Hong Kong dollars; currently, its stock price has increased more than twice from the issue price; while previously listed Blind Box leader. $POP MART (09992.HK)$ Its stock price has increased by over 100% this year alone.
Regarding this, Lai Yeye pointed out that looking ahead, the industry pattern of the Hong Kong stock IPO market will continue to follow a "Technology + Consumer" dual engine driving trend. In terms of Consumer, the non-traditional sub-sector driven by "self-consuming" will be at the core, and IPOs in these industries are expected to enjoy greater market cap, higher valuation levels, and higher subscription multiples, which will help these companies achieve better stock price performance after listing.
For the dining sector, which is a typical part of the Consumer industry, Yu Lingqu believes in an interview that capital market investors are bullish on the dining industry, largely due to the huge consumption potential within the country. As the effects of domestic consumption-boosting policies continue to manifest, the demand for high-quality dining consumption will consistently increase, and leading dining enterprises with brand effects and stable supply chains will gain larger market space. At the same time, industry competition will further intensify, compelling leading dining enterprises to continuously diversify product types, innovate service models, and engage in cross-border cooperation to meet diverse consumer demands.
Additionally, Huang Lichong believes that listing on the Hong Kong stock market will provide leading brands with ample capital, helping to accelerate store expansion, supply chain upgrades, and brand building, thus further consolidating their leading position in the fierce market competition. With the support of capital, leading companies have the capability to achieve expansion through acquisitions, price reductions, promotions, and digital transformation, driving an increase in industry concentration.
Editor/rice
