Mixue Group, China’s largest fresh-drinks chain, has launched Hong Kong’s hottest initial public offering (IPO) on the strength of its supply chain – and its ultralow prices.
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The retail portion of the company’s Hong Kong debut attracted more than HK$1.6 trillion (US$205.9 billion) in subscriptions on Wednesday, according to a person familiar with the matter. In terms of margin loans, retail investors borrowed nearly HK$1.8 trillion from brokerages to subscribe.
By this metric, Mixue surpassed a record set by Ant Group’s scuttled IPO in 2020 and Kuaishou Technology’s share sale in 2021, which both raked in around HK$1.3 trillion in loans.
Trading in Mixue’s shares starts on Monday.
As competition heats up in mainland China’s bubble tea industry, investor confidence is rooted in the company’s supply chain.
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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.
