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The bubble tea giant shoots in the debut of Hong Kong Trading

The King of Snow pet in a cup in a Mixue store in Beijing, China, on Thursday, February 27, 2025.

Bloomberg | Bloomberg | Getty images

The largest bubble tea chain shares in China, Mixue, increased more than 40% in their market debut on Monday after an initial public offer very signed in excess.

The shares were for the last time that approximately 43% was quoted at 290 dollars from Hong Kong ($ 37.29) each, compared to OPI’s offer price HK $ 202.5 per share. The action had initially opened trade to HK $ 267, according to Exchange data.

Mixue, who is known for his milk tea, fruit drinks, ice cream and coffee, had offered 17.06 million shares in his opi, raising a total of HK $ 3.45 billion.

The shares of other Chinese bubble tea companies that appear in Hong Kong were negotiated more under Monday morning, erasing previous profits. Nayuki quoted 6.2%, while Sichuan Baicha Baidao was 5.5% lower. The rubber fell 3.3%.

The OPI has acquired the support of five cornerstone investors, which include M&G Investments, Hongshan Growth, persistent Growth Limited, HHLR Fund and the Long-Z Fund of Meituan.

Mixue’s shares were very sought after, with the Hong Kong offering more than 5,200 times in excess. The international offer was more than 35 times in excess.

The initial assignment of the OPI was 10% for the offer of Hong Kong, and 90% to the international offer.

However, Mixue said that because Hong Kong’s offer was subscribed in excess in more than 100 times of the total number of supply actions initially available, his participation in the OPI had increased from 10% to 50%, with the other 50% to the international offer.

The Bookrunners for the OPI were Bank of America Securities, Goldman Sachs and UBS.

Investors ‘heat’ for the bubble tea market

“Investors are heating again to the bubble tea market,” said Longdley Zephirin, director and analyst of the Zephirin Group, adding that Mixue’s OPI is a demonstration of how “hungry” investors are.

Although Mixue’s abroad points are currently based largely on Southeast Asia, the bubble tea chain can come to follow its partner of Chinese tea drinks, Heytea, to expand to Europe and the United States, Zephirin said.

Mixue’s greatest challenge is to change cities of level two and level levels three to level one cities, where most of its competitors such as Nayuki and Heytea have points of sale, said Zephirin.

Although there is no official classification, cities in China are often classified at certain levels based on factors such as the Gross Domestic Product (GDP) and the population. Shanghai, Beijing and Guangzhou are widely cited as top -level cities.

“Our base case assessment of the Mixue Group is an implicit market capitalization of HKD 96 billion or the target price of HKD 254, which is 26% higher than the initial price of the OPO,” said Douglas Kim, an OPI analyst by Douglas Research Advisory, which also publishes on Smartkarma.

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