Shares of Mixue Ice Cream and Tea, the bubble tea sensation that now boasts more outlets than both McDonald's and Starbucks, surged 40% upon its trading debut on the Hong Kong Stock Exchange, raising $444 million in this year's biggest IPO in the financial hub.
Bubble Tea Giant Mixue Surges 40% on Market Debut, Outshining Starbucks
Bubble Tea Giant Mixue Surges 40% on Market Debut, Outshining Starbucks
Mixue Ice Cream and Tea debuts with a significant public offering, demonstrating resilience amid economic challenges in China.
In a remarkable debut that defied economic challenges within China, Mixue Ice Cream and Tea—the leading bubble tea chain with a staggering 45,000 locations—witnessed its shares soar by 40% on Monday as it commenced trading on the Hong Kong Stock Exchange. The firm successfully raised $444 million, marking the largest initial public offering of the year in the region, despite a backdrop of consumer hesitance influenced by ongoing economic struggles including a property crisis.
Founded in 1997 by Zhang Hongchao, who started it as a side project to support his family's finances, Mixue's full name translates to "honey snow ice city." The popular chain specializes in bubble tea and ice cream, offering products at competitive prices, with an average cost of just six Chinese yuan (approximately $0.82).
Mixue's rapid expansion outpaced both McDonald's and Starbucks, showcasing over 45,000 retail outlets across China and 11 other countries, including Singapore and Thailand. The company's operational model, which relies heavily on franchisees rather than direct ownership like Starbucks, aligns it more as a raw-materials supplier than a conventional brand.
This positive market entry for Mixue starkly contrasts with its competitor Guming, whose shares declined upon its market debut earlier this year. The volatile reception of bubble tea stocks raises questions—could China's bubble tea boom be nearing a peak?
