China's Mixue Bingcheng Soars 24% on Hong Kong Debut

Mixue Bingcheng, China's largest bubble tea chain, made a strong debut on the Hong Kong Stock Exchange (HKEX) on Wednesday, with its shares surging 24% from the initial public offering (IPO) price. The company's IPO was heavily oversubscribed, with the Hong Kong offering over 5,200 times oversubscribed and the international offering more than 35 times oversubscribed. This overwhelming demand reflects investors' confidence in the company's growth prospects and strong brand recognition.

Mixue Bingcheng's IPO comes weeks after another Chinese bubble tea chain, Guming's, also listed on the HKEX. Both companies have benefited from the growing popularity of bubble tea in China and internationally, as well as the increasing demand for affordable and high-quality beverages. Mixue Bingcheng's affordable pricing strategy, with cups of beverages priced at approximately RMB 6 (USD 0.8) per serving, has attracted a large customer base and contributed to its strong market position.

The company's diverse product portfolio, including fruit drinks, teas, ice creams, and coffees, caters to a broader range of consumer preferences and enhances its appeal. Mixue Bingcheng's rapid expansion and strong financial performance have also contributed to its success. As of September 30, 2024, the company had opened approximately 4,800 stores outside the Chinese mainland, reflecting its strong growth potential.

Mixue Bingcheng's IPO raised a total of HK$3.45 billion (USD 438 million), with the proceeds earmarked for enhancing its supply chain, building and promoting its brand, and investing in digitalization and intelligence capabilities across all business segments. The company's strong debut on the HKEX is a testament to its robust financial performance and growth prospects, as well as the growing interest in the global beverage market.



In conclusion, Mixue Bingcheng's successful IPO and strong debut on the HKEX reflect the company's strong brand recognition, affordable pricing strategy, diverse product portfolio, and rapid expansion. As the company continues to grow and invest in its supply chain, brand, and digital capabilities, investors can expect Mixue Bingcheng to maintain its competitive edge in the global beverage market and deliver strong returns in the long run.