General Atlantic backs Chinese tea company's IPO

Cornerstone investors are subject to a 12-month lock-up period.

Tenfu is offering 208.62 million new shares, or 17% of its enlarged capital, at HK$4.80-6.80 per share, 90% of which are being offered to institutional investors. If the 15% over-allotment option is exercised, the IPO could be worth up to $209 million. The company is scheduled to begin trading on September 26. Credit Suisse, China International Capital Corp. and Polaris are coordinating the deal and serving as bookrunners.

Tenfu plans to use 40% of the proceeds to expand its sales network while a 25% will be put toward acquiring properties for self-owned retail outlets. The remainder will be used to promote brands and enhance consumer awareness and expand production capacity, as well as for working capital and other general corporate purposes.

Earlier this year, General Atlantic was a cornerstone investor in Chinese supermarket operator Sun Art Retail Group's delayed IPO in Hong Kong. In May, it was said to be considering a bit for Shanghai Motel Management, China's largest budget hotel chain, in partnership with China Lodging Group, Bain Capital and CDH Investments.

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• Topics
• Greater China
• Consumer
• General Atlantic