Mixue Group, a leading bubble tea manufacturer, experienced a remarkable surge of over 47% on its Hong Kong stock market debut on March 3, 2025. Shares closed at HKD 287 ($36.74), propelling the company’s valuation to an impressive $140.8 billion.
Why it matters: Mixue’s successful debut highlights robust investor appetite for China’s cost-conscious beverage market, even amidst broader economic uncertainty. The company’s rise underscores how budget-friendly consumer trends are reshaping China’s food and beverage industry, with mass-market brands gaining significant traction.
Key details: In its 28-year history, Mixue raised only one funding round prior to its IPO, securing over $290 million from prominent investors like Hillhouse Capital, Meituan Long-Z Investments, and CPE.
- Mixue’s Hong Kong debut saw shares soar by 47%.
- Individual investors sought HKD 1.8 trillion ($230.8 billion) in margin financing for stock purchases.
- Mixue’s rapid growth stems from its competitive pricing, with products typically ranging from RMB 2-8 ($0.28 to $1.11). This approach has resonated strongly with budget-aware consumers, undercutting rivals in China’s non-alcoholic beverage market.
Context: In recent years, China’s freshly-made drinks sector has attracted significant investment, with numerous companies going public or planning IPOs. Players like Nayuki, Chabaidao, and Guming have already listed, while Hey Tea, Tencent-backed Jeni’s, Chagee, Chayan Yuese, and Tianlala are among those preparing for their market debuts.
- Mixue’s journey to listing was challenging. After unsuccessful attempts to list on China’s A-Share market in 2022 and the Hong Kong Stock Exchange in 2024, the bubble tea giant finally succeeded in March 2025.
- As of December 2024, Mixue operates over 46,000 stores worldwide, surpassing Starbucks to become the largest freshly-prepared beverage chain globally by store count.
Mixue’s Hong Kong debut broke records previously held by short-video platform Kuaishou, which raised HKD 1.5 trillion ($192.3 billion) during its 2021 IPO. Since then, Kuaishou’s share price has declined from HKD 115 ($14.74) to HKD 55 ($7.05) as of March 2025.
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