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

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 rose to an intraday high of HK$269, outperforming the 1.4 per cent gain in the benchmark Hang Seng Index.

The opening price values 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 Hong Kong’s most popular ever IPOs.

According to a recent prospectus, Mixue generates the bulk of its revenue by selling ingredients – milk, coffee and syrups – as well as equipment to its global network of over 45,000 franchisees. The model is powered by a “comprehensive end-to-end supply chain” that includes procurement, production, logistics, research and development and quality control.

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