Image Source : China Visual

BEIJING, September 30 (TMTPOST) – Tims China, the operator of Canadian coffee chain Tim Hortons in China, was officially listed on Nasdaq on Thursday, EST, after completing its merger with special purpose acquisition company (SPAC) Silver Crest. 

The company went public at a valuation of $1.4 billion. On the first day of the IPO, the company's shares closed at $7.29, down 8.76%. As the first Chinese coffee SPAC stock, Tims China said it will use the financed money to continue to expand its business in China's coffee market.

Through its merger with Sliver Crest completed in September 2022, Tims China can obtain nearly $200 million of additional financing. Tims China's overall valuation dropped from $1.688 billion when the company disclosed its SPAC listing in August 2021, to $1.4 billion in March 2022, a 17 percent drop.

In addition, Tims China expects its direct store revenue to be 671 million yuan (approximately $94.29 million) this year, which implies a compound annual growth rate (CAGR) of 63% for its 2021-2026 period.

According to Tims China's CEO Lu Yongchen, the company is expected to have 400 stores in China by the end of this year, or to open one store every 36 hours. Tim China's stores include three formats: flagship stores, classic stores, and Tims Go, which is mainly for delivery. Tims China's key comparative advantage over other coffee chains is digital operations.

The financial report shows that Tims China's revenue for 2019, 2020, and 2021 was 57.257 million yuan (approximately $8.05 million), 212 million yuan (approximately $29.79 million), and 643 million yuan (approximately $90.36 million), respectively. Its net loss in 2019, 2020 and 2021 was 87.83 million yuan (approximately $12.34 million), 143 million yuan (approximately $20.09 million) and 383 million yuan (approximately $53.83 million), respectively.

As of December 31, 2021, Tims China held cash and cash equivalents of 390 million yuan (approximately $54.8 million). Tims China has 390 stores in 21 cities in mainland China. Self-operated stores expanded from 31 stores on December 31, 2019, to 373 stores on December 31, 2021.