The Snow King Mascot in a cup in a Beijing mix store, China, on Thursday, February 27, 2025.
Bloomberg | Bloomberg | Pictures of getty
Actions of the largest bubble tea in China Mixue jumped more than 40% in their market debut Monday after a strongly overflowing initial public offer.
Actions were last seen HK 202.5 dollars per action. Actions had initially opened the trade in HK $ 267, according to change data.
Mixue, known for his milk tea, fruit drinks, ice cream and coffee, had offered 17.06 million shares at his OIP, reaching a total of $ 3.45 billion from HK.
The actions of other Chinese bubble tea companies contained in Hong Kong negotiated on Monday morning, erasing previous earnings. Nayuki contributed 6.2%, while Sichuan Baicha Baidao was 5.5% lower. The rubber dropped by 3.3%.
The IPO has obtained the support of five Cornerstone investors, including M&G Investments, Hongshan Growth, Persistence Growth Limited, HHLR Fund and the Fund of Meituan Long-Z.
Mixue’s actions were very sought after, with the Hong Kong that offered more than 5,200 times oversized. The international offer was over 35 times overflowing.
The initial assignment of the IPO was 10% to the Hong Kong offer and 90% to the international offer.
However, Mixue said that because the Hong Kong offer was supplied by more than 100 times the total number of offerings initially available, its IPO share from 10% to 50% had increased, with the other 50% in the international offer.
The OIP Bookrunners were securities Bank of America, Goldman Sachs and UBS.
Investors who warm up in the bubble tea market
« Investors are being warmed up again at the bubble tea market, » said Longdley Zephirin, director and analyst of the Zephirin group, adding that the Mixue IPO is a demonstration of what « hungry » investors are.
While Mixue is currently largely based in the south -East Asian, the bubble tea chain can come and follow the Chinese tea chain, Heytea, expanding in Europe and the United States, Zephirin said.
Mixue’s biggest challenge is to move from the cities of Tier Two and Tier Three to top -notch cities, where most of their competitors like Nayuki and Heytea have outlets, Zephirin said.
Although there is no official classification, China cities are often classified at certain levels based on factors such as gross domestic product (GDP) and population. Shanghai, Beijing and Guangzhou are widely cited as top -notch cities.
« Our basic case assessment of Mixue Group is implicit in the 96 billion HKD market lid or the target price of HKD 254, which is 26% higher than the initial price of the IPO, » said Douglas Kim, an IPO analyst Douglas Research Advisory, who also publishes Smartkarma.
Leave a Reply