The Snow King mascot on a cup at a Mixue retailer in Beijing, China, on Thursday, Feb. 27, 2025.Bloomberg | Bloomberg | Getty ImagesShares of China’s biggest bubble tea chain Mixue jumped up to 34% on its marketplace debut on Monday after a closely oversubscribed preliminary public providing.Stocks had been closing observed buying and selling up kind of 34% at 271 Hong Kong greenbacks ($34.85) apiece, in comparison to the IPO be offering worth of HK$202.5 according to percentage. The inventory had initally opened industry at HK$267, in keeping with alternate knowledge.The corporate had presented 17.06 million stocks in its IPO, elevating a complete of HK$3.45 billion.Mixue is understood for its milk tea, fruit beverages, ice cream and occasional.Stocks of alternative Chinese language bubble tea corporations indexed in Hong Kong additionally rose on Monday morning. Nayuki traded up 7.1%, whilst Sichuan Baicha Baidao was once 5.6% upper. Guming rose 2.2%.The IPO has won the fortify of 5 cornerstone traders, which come with M&G Investments, HongShan Expansion, Patience Expansion Restricted, HHLR Fund and Meituan’s Lengthy-Z Fund.Stocks of Mixue had been extremely wanted, with the Hong Kong providing over 5,200 instances oversubscribed. The world providing was once greater than 35 instances oversubscribed.
The preliminary allocation of the IPO was once 10% to the Hong Kong providing, and 90% to the world providing.Alternatively, Mixue mentioned that because of the Hong Kong providing being oversubscribed via greater than 100 instances of the overall choice of be offering stocks to start with to be had, it had larger its percentage of the IPO from 10% to 50%, with the opposite 50% to the world providing.The bookrunners for the IPO had been Financial institution of The us Securities, Goldman Sachs and UBS.Traders ‘warming up’ to the bubble tea marketplace”Traders are warming as much as the bubble tea marketplace once more,” mentioned Longdley Zephirin, predominant and analyst at The Zephirin Staff, including that Mixue’s IPO is an illustration of ways “hungry” traders are.Whilst Mixue is recently in large part primarily based in Southeast Asia, the bubble tea chain might come to observe fellow Chinese language tea drink chain, Heytea, in increasing into Europe and the U.S, Zephirin mentioned.Mixue’s largest problem is transferring from tier two and tier 3 towns into tier one towns, the place maximum of its competition like Nayuki and Heytea have retailers, Zephirin mentioned.Whilst there’s no professional classification, towns in China are continuously labeled in sure tiers according to components equivalent to gross home product (GDP) and inhabitants. Shanghai, Beijing and Guangzhou are extensively cited as first tier towns.”Our base case valuation of Mixue Staff is implied marketplace cap of HKD 96 billion or goal worth of HKD 254, which is 26% upper than the preliminary IPO worth,” mentioned Douglas Kim, an IPO analyst at Douglas Analysis Advisory, who additionally publishes on Smartkarma.
