Mixue Group, a bubble tea maker, shares surged over 47% at their March 3, 2025 Hong Kong debut, peaking at HKD 287 ($36.74) per share, bringing the company close to a $140.8 billion market valuation.
Why it matters: Mixue’s explosive debut underscores strong investor appetite for China’s budget-friendly beverage market, despite general economic uncertainties. The listing also highlights how cost-conscious consumer trends continue to shape China’s food and beverage industry, favoring a range of brands with mass-market appeal.
Details: In its 28-year history, Mixue secured only one funding round prior to its IPO – a December 2020 pre-IPO round with more than $290 million investment from Hillhouse Capital, Meituan Long-Z Investments and CPE.
- Mixue shares surged as much as 47% in Hong Kong debut
- Individual investors sought HKD 1.8 trillion ($230.8 billion) in margin financing for equity purchases.
- Mixue‘s rapid revenue growth stems from its competitively priced products, which have resonated strongly with budget-conscious consumers. The company’s core offerings typically range from RMB 2-8 ($0.28 to $1.11), significantly undercutting rival brands in China’s crowded soft drinks market.
Context: In recent years, significant capital has flooded China’s freshly made beverage sector, with multiple companies going public or planning listings. Nayuki, ChaPanda, and Guming have already listed shares, while Hey Tea, Auntea Jenny, Chagee, Chayan Yuese, and Tianlala are among those preparing IPOs.
- Mixue‘s path to listing proved particularly challenging. After failed attempts to list on China’s A-share market in 2022 and Hong Kong’s stock exchange in 2024, the bubble tea giant finally succeeded this month with its Hong Kong debut.
- As of December 2024, Mixue operates over 46,000 stores globally – surpassing Starbucks to become the world’s largest freshly prepared drinks chain by store count.
The company’s Hong Kong listing broke records previously held by short-video platform Kuaishou, which raised HKD 1.5 trillion ($192.3 billion) during its 2021 IPO. Kuaishou shares have since fallen from their IPO price of HKD 115 ($14.74) to HKD 55 ($7.05) as of March 2025.
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