Bubble Tea Big will increase on the commerce debut in Hong Kong

The Snow King mascot on a cup in a mixed business in Beijing, China, on Thursday, February 27, 2025.

Bloomberg | Bloomberg | Getty pictures

The stocks of the largest bubble tea chain mixes China fell by more than 40% on Monday after a heavily overrunned IPO.

Finally, the shares were divided into 285.8 Hong Kong dollar ($ 36.52) per piece into 285.8 Hong Kong, compared to the IPO offer price of $ 202.5 HK per share. According to Exchange data, the share opened the trade at $ 267 HK.

Mixue, which is known for milk tea, fruit drinks, ice cream and coffee, offered 17.06 million shares in the IPO and increased a total of 3.45 billion HK $.

Shares of other Chinese Bubble tea companies that are listed in Hong Kong acted lower on Monday morning and issued earlier profits. Nayuki acted by 6.2%, while Sichuan Baicha Baidao was 5.5% lower. The grille fell by 3.3%.

The IPO has received the support of five cornerstones, including M&G investments, Hongshan growth, persistence of persistence Limited, HHLR funds and Meustuan-Long-Z Fonds.

The shares of Mixue were in great demand, with the Hong Kong overrun over 5,200 times. The international offer was more than 35 -fold.

The initial assignment of the IPO was 10% to the Hong Kong offer and 90% for the international offer.

Mixue said, however, that due to the offer of Hong Kong, that they were exaggerated from more than 100 times the total number of offer shares offered initially, increased its share of 10% to 50%, the other 50% on the international offer.

The Bookrunners for the IPO were Bank of America Securities, Goldman Sachs and UBS.

The investors “warm up” to the Bubble Tea market

“Investors warm up again on the Bubble Tea market,” said Longdley Zephirin, director and analyst at Zephirin Group and added that the IPO of Mixue is a demonstration of the “hungry” investor.

While Mixue is currently mostly resident in Southeast Asia, the Bubble Tea chain can get to expand the Chinese tea drink chain Heytea in Europe and the USA, said Zephirin.

Mixue's biggest challenge is to move three cities in Tier -one cities from Tier two and animal in which most of its competitors such as Nayuki and Heytea have outlets, said Zephirin.

Although there is no official classification, cities in China are often classified at certain levels, based on factors such as gross domestic product (GDP) and the population. Shanghai, Beijing and Guangzhou are widely quoted as the first cities.

“Our basic case assessment of the mixed group is an implicit market capitalization of 96 billion HKD or the course price of HKD 254, which is 26% higher than the initial stock exchange price,” said Douglas Kim, an IPO analyst at Douglas Research Advisory, which is also published on SmartKarma.