(Yicai Global) June 7 -- Chinese fruit tea chain Nayuki Holdings has been given the greenlight to proceed with an initial public offering on the Hong Kong stock exchange, which will make it the first teahouse to go public in Hong Kong.

Nayuki’s IPO application has been approved, Hong Kong Exchanges and Clearing, operator of the Hong Kong bourse, said yesterday. The Shenzhen-based firm could list within the next 25 days.

Despite rapid expansion in recent years, Nayuki is already turning a profit. Last year it raked in profit of CNY16.6 million (USD2.6 million) compared with losses of CNY11.7 million in 2019, according to its IPO prospectus. It also recorded a 22.21 percent jump in revenue to CNY3.06 billion (USD477.68 million).

Established in 2015, Nayuki operates more than 489 tea outlets in 66 cities across China. It is the second-largest teahouse chain in the country with 18.9 percent market share last year, according to China Insights Consultancy. Nayuki also has one teahouse in both Hong Kong and Japan.

Editor: Kim Taylor