Heytea Is Said to Pick UBS for $500 Million Hong Kong IPO (1)

Heytea, the Chinese teahouse chain, has tapped UBS Group AG for its potential Hong Kong initial public offering as soon as next year, according to people familiar with the matter.

The company, which is famous for its cheese-foam teas, could raise at least $500 million in an IPO, the people said, asking not to be identified as the information isn’t public. Plans are still preliminary and other banks that have had discussions with Heytea could be added to the lineup, the people said.

Details of the potential IPO such as size and timing could still change, the people said. A ...