This undated photo shows a selection of beverages and bread from Nayuki. (PHOTO PROVIDED TO CHINADAILY.COM.CN)

Naixue’s Tea, one of the biggest bubble tea chains in China, is considering an initial public offering in the US that could raise as much as US$400 million, according to people familiar with the matter.

Naixue has more than 230 stores across China,  according to its website

The company, also known as Nayuki, is working with advisers on the potential first-time share sale that could take place as soon as this year, said the people, who asked not to be identified as the discussions are private. The firm is currently looking to raise about US$50 million to US$100 million in a pre-IPO funding round, the people said.

Naixue, started by Shenzhen Pindao Restaurant Management Co in 2010, has more than 230 stores across China, according to its website. The chain sells fresh-fruit tea -- some with cheese foam on the top -- as well as cold brew tea and baked goods. HEYTEA, another popular bubble tea chain, is among its biggest rivals in the country.

ALSO READ: Fusion tea wins hearts of young peopleDetails of Naixue’s offering including timeline, size and listing venue could change as the novel coronavirus outbreak is weighing on market sentiment, the people said. A representative for Shenzhen Pindao didn’t immediately respond to requests for comment.

Chinese companies raised about US$3.7 billion through US listings last year, led by DouYu International Holdings Ltd and Luckin Coffee Inc, according to data compiled by Bloomberg. Citic Capital Acquisition Corp is among the nine Chinese firms that completed their US first-time share sales this year, raising a total of US$722 million, the data show.