Mixue Group Seeks $444M in Hong Kong IPO Amid Global Expansion

China’s largest bubble tea and beverage brand, Mixue Group, is set to raise HK$3.45 billion ($443.66 million) through an initial public offering (IPO) in Hong Kong, according to a regulatory filing on Friday. The company is offering 17.1 million shares at HK$202.5 each, with bookbuilding starting the same day. Mixue’s stock is expected to debut on the Hong Kong Stock Exchange on March 3.

Initially, Mixue planned to raise up to $1 billion, but the offering was downsized as the company is financially stable, sources previously told Reuters. Founded in 1997 in Zhengzhou by Zhang Hongchao, Mixue began with a homemade shaved ice machine and has since grown into a global franchise powerhouse. It now operates 45,000 stores across China and 11 other countries, offering affordable tea drinks, coffee, and ice cream, typically priced around $1.

Mixue reported selling 7.1 billion drinks in the first nine months of 2023, reflecting its dominance in China’s competitive beverage market. The IPO aims to fuel international expansion, solidifying Mixue’s position as a leading low-cost tea and coffee brand.

The company’s franchise-based business model has driven rapid growth, making it a formidable player in the global bubble tea industry. Its upcoming Hong Kong listing is expected to attract significant investor interest, capitalizing on its strong market presence and affordability-driven strategy.

With its extensive store network and competitive pricing, Mixue is well-positioned for further global expansion, reinforcing its reputation as a budget-friendly beverage giant.