Mixue shares jump 29% in Hong Kong trading debut as investors flock to milk tea vendor

SCMP | March 2, 2025, 9:13 p.m. | Original

Mixue Group’s store in Hong Kong’s Mongkok district on February 25, 2025. Photo: Reuters

Bubble tea brand Mixue Group’s stock jumped in its Hong Kong trading debut as investors snapped up shares of the milk tea vendor, marking one of the city’s most successful initial public offerings (IPOs) in recent months.

Shares of the Zhengzhou-based company changed hands at HK$262 each when trading commenced in Hong Kong, 29.3 per cent higher than their offer price of HK$202.50. They ended the day up 43 per cent at HK$290, outperforming the 0.3 per cent gain in the benchmark Hang Seng Index.

The opening price valued the company’s Hong Kong-listed equity base at HK$99 billion (US$12.7 billion), according to its listing prospectus. Retail investors subscribed for 5,258 times more shares than were on offer in that tranche, making it one of Hong Kong’s most popular ever IPOs.

Retail investors borrowed nearly HK$1.83 trillion via brokerages to subscribe to the stock, surpassing a record set by Ant Group’s scuttled IPO in 2020 and Kuaishou Technology ’s share sale in 2021, which both raked in around HK$1.3 trillion in loans.

Mixue’s rally was “still below our expectations given current market sentiment, its oversubscription amount and fundamentals – healthy margin with growing revenue”, said Kenny Wen, head of investment strategy at KGI Asia.

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