The Chinese bubble tea chain Mixue Ice Cream and Tea, known for its extensive market presence, saw its shares soar by 40% during its debut on the Hong Kong Stock Exchange, raising $444 million in what is the year's largest IPO in the region.
Bubble Tea Giant Mixue Surges 40% on Hong Kong Stock Market Debut
Bubble Tea Giant Mixue Surges 40% on Hong Kong Stock Market Debut
Mixue Ice Cream and Tea boasts more outlets than McDonald's and Starbucks combined.
Despite the economic adversity facing consumers in China, including a property crisis and low confidence levels, Mixue's affordable offerings have contributed to its stellar debut. Founded in 1997, the brand has rapidly expanded to over 45,000 stores, surpassing not only local competition but also global fast-food giants like McDonald's and Starbucks. Mixue primarily operates on a franchise model, distinguishing itself from Starbucks by heavily relying on independent operators. The company’s success stands in stark contrast to smaller bubble tea producers struggling in the stock market, raising questions about the sustainability of the bubble tea phenomenon in China.
