Fujian Anxi Tiekuanyin Group Co, a leading domestic Oolong tea manufacturer and retailer, aims to raise 157 million yuan ($24.7 million) through an IPO on the Shenzhen Stock Exchange, a move that would make it the first tea company to be listed in the domestic A-share market, Global Times reported.
The company aims to raise funds by selling 22.9 million new shares, representing a quarter of its total capital after the issuance, according to its preliminary prospectus posted on the website of the China Securities Regulatory Commission (CSRC) Wednesday evening.
Money raised will be invested in tea plantation, expansion of sales channels, as well as research and development, the prospectus said.
Anxi Tiekuanyin posted a net profit of 48.9 million yuan in 2011, an 85.97 percent year-on-year growth.
Tenfu Tea, China's largest tea retailer, made a debut in Hong Kong in September 2011, raising HK$1.42 billion, the newspaper said.