Chinese coffee chain giant Manner Coffee is now actively preparing for an initial public offering in Hong Kong that could arrive as early as 2026. The company aims to raise several hundred million U.S. dollars through the IPO, which reportedly could value the firm at $3 billion to $4.5 billion. Proceeds are expected to be used to further accelerate the chain’s nationwide rollout and strengthen its competitive stance against larger, entrenched rivals such as Luckin Coffee (OTCPK:LKNCY), Starbucks (SBUX), Cotti Coffee, and Costa Coffee (KO).
Manner Coffee was founded in 2015 with a single, tiny roadside stall in Shanghai aimed at making premium coffee accessible to the city’s fast-growing base of young professionals. The boutique chain grew rapidly after it started to attract backers such as Chinese PE firm Capital Today, ByteDance (BDNCE), Singapore-based Temasek, and Meituan’s (OTCPK:MPNGF) (OTCPK:MPNGY) venture arm. Today, Manner Coffee is extremely popular in China, especially among young urban professionals in top-tier cities. Most of the brand’s stores are concentrated near business centers, subway transfer corridors, and shopping districts, making them highly accessible to younger workers with busy, fast-paced lifestyles.
The brand is also known for featuring lower coffee prices for comparable drinks at premium specialty chains in China. Manner is also known for its minimalist store design, affordable pricing, and a strong sustainability focus, offering discounts for customers who bring their own cups.
Looking ahead, the company is reported to be actively preparing to add as many as 400 stores in Indonesia in the coming year, viewing Southeast Asia as a strategic growth frontier.
The big picture
China now ranks as the world’s sixth-largest coffee market by total consumption and sales revenue, having more than doubled its demand over the past decade. China is just behind the United States, Germany, Japan, France, and Italy, and the rapid growth of coffee consumption is expected to push it even higher on the list in the next few years, which has made it a focus of investors looking for growth stories.