Mixue Group’s stock jumped in its Hong Kong trading debut as investors snapped up shares of the milk tea vendor, marking one of the city’s most successful initial public offerings (IPOs) in recent months.
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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.
More story to follow …..
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