Clifford Chance

Clifford Chance advises on tea beverage brand ChaPanda's US$330 million Hong Kong IPO

Global law firm Clifford Chance acted as the legal advisors to the sole sponsor CICC and underwriters for the initial public offering and listing of tea beverage brand Sichuan Baicha Baidao Industrial Co., Ltd. (ChaPanda) on the main board of the Hong Kong Stock Exchange. The IPO is expected to raise approximately US$330 million.

China Co-Managing Partner Tim Wang and partners Fang Liu and Tianning Xiang co-led the deal, with support from counsel Claire Cao and Erxin Lu, associates Astrid Zhuang and Ruonan Tang, trainee solicitors Yunwen Wang and Ke Shi and legal analyst Yuxuan Liu.

Tim said "We are delighted to advise on the successful listing of ChaPanda, an example of the growth potential of innovative brands in the tea beverage sector targeting China's burgeoning consumer economy. This IPO highlights our expertise on the ground and ability to seamlessly support homegrown brands on their strategic transactions and wider expansion."

ChaPanda sells freshly made tea drinks in China, operating mainly through a franchise model. It opened its first store in Chengdu, Sichuan in 2008, and has subsequently grown its store network in China to over 8,000 stores, spanning 31 provinces and municipalities. ChaPanda intends to use the proceeds from its listing to improve overall operation capabilities, strengthen its supply chain, develop digitalisation capabilities, branding and promotion activities, promote its self-operated coffee brand and develop a coffee shop network across China.

Clifford Chance has advised on the capital markets transactions of some of China's well-known food and beverage companies, including Guoquan Food Shanghai Co Ltd (packaged meals company), Shiyue Daotian Group Co Ltd (kitchen staple food company) and Weilong Delicious (spicy snacks company).