Strong Market Debut for China’s Leading Bubble Tea Chain

Shares of Mixue’s Stock , China’s largest bubble tea chain, soared more than 40% on Monday as the company made its highly anticipated debut on the Hong Kong Stock Exchange. The stock opened at HK$267 and later climbed to HK$284 ($36.52) per share, significantly exceeding its initial public offering (IPO) price of HK$202.5 per share.

Mixue’s Stock IPO was highly successful, with the company offering 17.06 million shares and raising HK$3.45 billion. The demand for its shares was immense, leading to an oversubscription of more than 5,200 times in the Hong Kong offering and over 35 times in the international offering. Due to this overwhelming interest, the allocation of shares was adjusted—50% was designated for the Hong Kong market, an increase from the initially planned 10%, while the remaining 50% was allocated to international investors.

The IPO was supported by five cornerstone investors, including M&G Investments, HongShan Growth, Persistence Growth Limited, HHLR Fund, and Meituan’s Long-Z Fund. The book runners for the offering were copyright Securities, Goldman Sachs, and UBS.

Mixed Reactions in the Bubble Tea Sector

Despite Mixue’s strong debut, other Hong Kong-listed bubble tea companies experienced declines in their stock prices on Monday. Nayuki, another well-known Chinese tea brand, saw its stock price drop by 6.2%, while Sichuan Baicha Baidao and Guming recorded losses of 5.5% and 3.3%, respectively. The fluctuations highlight the competitive nature of the bubble tea industry and investor sentiments shifting towards Mixue’s promising market potential.

The enthusiasm surrounding Mixue’s IPO reflects renewed investor confidence in the bubble tea market. Industry analysts suggest that the company’s strong branding, diverse product portfolio—including milk tea, fruit drinks, ice cream, and coffee—and rapid expansion have contributed to its appeal.

Future Growth and Market Expansion Plans

Market analysts predict that Mixue’s Stock expansion plans will be crucial in maintaining its momentum. While the company has a strong presence in Southeast Asia, experts believe it may soon follow in the footsteps of its competitor, Heytea, by expanding into Europe and the United States.

One of the company’s biggest challenges will be penetrating China’s tier-one cities, such as Shanghai, Beijing, and Guangzhou, where well-established brands like Nayuki and Heytea already dominate the market. Historically, Mixue has been more prevalent in tier-two and tier-three cities, but breaking into major urban centers will require strategic pricing, branding, and store placements.

Douglas Kim, an IPO analyst at Douglas Research Advisory, estimates that Mixue’s Stock market valuation could reach HK$96 billion, with a target stock price of HK$254—about 26% higher than its initial IPO price. Analysts suggest that the bubble tea industry remains an attractive investment opportunity, and Mixue’s strong IPO debut could mark the beginning of a new phase of aggressive expansion and market penetration for the brand.