Shares of Mixue Group, China’s leading bubble tea and beverage chain, soared 43% on its Hong Kong trading debut, marking a strong start for the company. The stock opened at HK$290, up from its offering price of HK$202.5, achieving a paper gain of HK$8,750 per board lot (100 shares).
This milestone makes Mixue the first mainland beverage stock to close above its offer price on its debut.
The company raised HK$3.46 billion by selling 17 million shares, with a retail subscription rate nearly reaching record-breaking levels. During the IPO’s book-building process, Hong Kong retail investors applied for HK$1.84 trillion worth of margin loans to purchase Mixue stock, surpassing the previous record of HK$1.3 trillion set by Ant Group’s suspended IPO in 2020.
Founded in 1997, Mixue has grown into a global franchise giant, operating over 45,000 stores worldwide by September 2024, outpacing Starbucks’ 40,576 locations.
Despite the excitement surrounding Mixue’s IPO, some caution remains regarding the intense competition within the bubble tea market, with analysts noting the potential risks of sustained high growth in the sector.
Nevertheless, Mixue’s successful debut highlights the potential for the tea beverage sector and Hong Kong’s role in facilitating international market expansion.
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