Shares of China’s leading bubble tea giant, Mixue, soared 34% during its initial trading day on Monday after pulling off a remarkably oversubscribed IPO. As the trading session is reaching mid-day, Mixue is trading at a 34% gain at HK$271 per share, a slight decline from its day-high of HK$274, marking a significant rise from its original IPO price of HK$202.5 per share.
Through the launch, Mixue put forward 17.06 million shares, successfully raising capital amounting to HK$3.45 billion. The brand, celebrated for its suite of offerings including milk tea, fruit-based beverages, ice cream, and coffee, has attracted considerable investor interest.
The IPO drew backing from five cornerstone investors: M&G Investments, HongShan Growth, Persistence Growth Limited, HHLR Fund, and Long-Z Fund from Meituan. Investor enthusiasm was notably high, with Hong Kong’s tranche oversubscribed by a staggering factor of over 5,200 times, while international interest surpassed subscriptions by more than 35-fold.
The bubble tea firm is very successful as the company has 45,000 stores in China alone and more branches across 11 other countries.
Its snowman mascot wearing a crown and a red cloak has attracted several young customers. Furthermore, its main products, such as fruit, tea drinks, coffee, and ice cream, only cost about $1.
By the end of September, more than 45,000 stores of Mixue were franchised. However, Mixue’s income did not mostly depend on the franchise fees.
