Jamie Spencer
China’s largest bubble tea and drinks chain, Mixue Group, made a spectacular debut on the Hong Kong Stock Exchange on Monday, with shares surging over 47% in their first trading session. This marks one of the strongest IPO performances in Hong Kong since 2021, reflecting renewed investor confidence in new equity issuances.
IPO Success: A Strong Start for 2025
Mixue raised $444 million through its initial public offering (IPO) by selling 17 million shares at a fixed price of HK$202.5 each. The stock opened at HK$262 and climbed as high as HK$298, significantly outperforming the Hang Seng Index, which saw a modest 1% increase.
This stellar performance comes as a welcome sign for Hong Kong’s IPO market, which has been looking for a revival amid Beijing’s efforts to support private enterprises and boost economic momentum. Key upcoming listings, such as CATL and Chery Automobile, are expected to benefit from this renewed enthusiasm.
Unprecedented Retail Investor Demand
Retail investors demonstrated overwhelming interest in Mixue’s IPO, subscribing for an astonishing 5,258 times more shares than were available. This makes it one of the most popular IPOs in Hong Kong’s recent history, trailing only Bloks Group’s January IPO, which saw a record 6,000 times oversubscription.
Institutional investors also showed strong demand, with the institutional tranche oversubscribed 35 times, reinforcing the stock’s appeal across investor categories.
Competitive Landscape: A Bright Spot Amidst Sell-offs
Mixue’s impressive debut came even as shares of its competitors declined. Sichuan Baicha Baidao dropped nearly 7%, while Guming fell 1.7%, highlighting investor preference for Mixue’s growth prospects.
“Many Chinese tea chain stocks had dismal debuts, and Mixue’s 30% plus jump is a pleasant surprise to investors,” said George Au, deputy sales director at Phillip Securities. “Some clients were so enthusiastic they brought their entire families to open accounts just to participate in this IPO.”
Hong Kong’s IPO Market Sees Best Start Since 2021
So far in 2025, Hong Kong has recorded $1.44 billion in IPOs, marking the strongest start to a year since 2021. According to Dealogic data, newly listed stocks have posted an average first-day gain of 11.7%, a sharp increase from 7.6% in 2024.
Kingston Securities executive director Dickie Wong noted, “The cost for retail investors to subscribe has been reduced to close to zero, which is increasing their incentive to participate.” Hong Kong’s new shortened IPO settlement period has also contributed to increased retail participation.
Mixue: A Franchise Giant in the Tea Industry
Founded in 1997 as a small ice shop in Zhengzhou, Henan province, Mixue has expanded into a global franchise powerhouse with over 45,000 stores worldwide, surpassing Starbucks’ 40,576 stores.
Unlike traditional beverage brands, Mixue operates primarily as a raw-material supplier, providing ingredients, packaging, and equipment to its franchisees rather than directly managing stores. Nearly all Mixue outlets are run by franchisees, in contrast to Starbucks, which operates 53% of its stores directly.
Financial Performance: Consistent Growth
Mixue’s financials underscore its robust growth. In the first nine months of 2024, the company reported a net profit of 3.49 billion yuan, up from 3.19 billion yuan in the same period a year earlier. The IPO success further solidifies its position as a leader in China’s booming bubble tea industry.
A Positive Signal for Hong Kong’s IPO Market
Mixue’s impressive market debut is a strong indicator of renewed investor confidence in Hong Kong’s IPO scene. With major listings lined up for 2025, this performance could set the tone for a strong year ahead. As Mixue continues its expansion, it will be closely watched as a benchmark for the future of China’s fast-growing tea and beverage sector.
