China-based bubble tea chain Mixue’s shares jumped more than 40% on its market debut, exceeding expectations. The initial public offering (IPO) was heavily oversubscribed, with the Hong Kong offering receiving over 5,200 times the number of bids compared to available shares. The international offering also saw significant interest, with demand over 35 times the amount.
Due to high demand, Mixue reallocated more shares to its Hong Kong offering. This IPO follows that of fellow Chinese bubble tea chain Guming just weeks prior. Mixue is known for its milk tea, fruit drinks, ice cream, and coffee offerings.
As a result of the oversubscription, Mixue’s shares were trading at HK$290 (approximately $37.29 USD) per share after opening at HK$267 on Monday morning. The company raised HK$3.45 billion from the IPO. Other Chinese bubble tea companies listed in Hong Kong saw their shares decline.
Five cornerstone investors have expressed support for Mixue’s IPO, including M&G Investments and Meituan’s Long-Z Fund. Experts say investors are “warming up” to the bubble tea market again, with Mixue’s IPO demonstrating strong demand. The company’s biggest challenge lies in expanding into tier one cities from its current locations in tier two and three cities.
Analysts have set a target price of HK$254 for Mixue’s shares, implying an implied market cap of HKD 96 billion.
Source: https://www.cnbc.com/2025/03/03/mixue-ipo-bubble-tea-giant-soars-on-hong-kong-trading-debut.html