By On March 3, 2025, Mixue Group, China’s premier bubble tea and drinks chain, commenced trading on the Hong Kong Stock Exchange with notable success. The company’s initial public offering (IPO) raised HK$3.45 billion (approximately $444 million), with shares priced at HK$202.50 each.
The debut saw Mixue’s shares opening at HK$262, marking a substantial increase and reflecting strong market confidence. The Hang Seng Index, in comparison, saw a modest rise of 0.8% on the same day.
The IPO garnered unprecedented interest from retail investors, with subscriptions exceeding available shares by 5,258 times, ranking it among Hong Kong’s most sought-after public offerings. Institutional investors also demonstrated significant interest, with their tranche being 35 times oversubscribed.
Established in 1997, Mixue has expanded rapidly, operating over 45,000 stores worldwide by September 2024, surpassing global giants like Starbucks in store count. The company’s franchise-centric model, with over 99% of outlets run by franchisees, has been pivotal to its growth. In the first nine months of 2024, Mixue reported a net profit of 3.49 billion yuan (approximately HK$3.73 billion), driven by its affordable product offerings, averaging 6 yuan per cup.
Mixue’s successful IPO is a positive indicator for Hong Kong’s financial markets, suggesting a robust pipeline of equity issuances from Chinese firms in the near future. The company’s performance highlights investor confidence in businesses that effectively cater to cost-conscious consumers.