Deliberations are ongoing and details of the IPO including bank lineup and timeline may change, the people said. A representative for Morgan Stanley declined to comment, while representatives for CICC and Sexy Tea didn’t respond to requests for comment.
China’s food and beverage sector, particularly targeting the middle class and the younger generation, has been expanding quickly despite a slowdown in the world’s second-largest economy. The industry has also been reportedly among those discouraged from listing in China’s main exchanges since last year.
Started in Changsha, Hunan province in 2013, Sexy Tea runs a network of new-style teahouses in China and has recently expanded into cafes and lemon tea shops, according to its website. It also sells house brand products such as tea utensils and stationary. As of October 2023, Sexy Tea operates more than 500 stores.
