Bubble-Tea Maker Chabaidao Slumps 37% in Hong Kong’s Biggest 2024 Debut

(Bloomberg) — Chinese bubble-tea maker Sichuan Baicha Baidao Industrial Co., also known as Chabaidao, plunged more than 37% in its trading debut in Hong Kong, with analysts citing growing competition and still weak consumer sentiment as reasons for its disappointing start.

Shares traded as low as HK$10.94 ($1.39) early on Tuesday, after being sold at HK$17.50 apiece in an initial public offering. The company, China’s third-largest maker of fresh tea drinks by sales value, had raised about HK$2.59 billion in Hong Kong’s biggest new share sale since November.