Mixue Ice Cream and Tea Soars on Hong Kong Stock Exchange Debut

HONG KONG, China — Mixue Ice Cream and Tea, a Chinese bubble tea chain, saw its shares surge more than 40% during its debut on the Hong Kong Stock Exchange on Monday, marking a significant milestone for the company as it raised $444 million, the largest initial public offering (IPO) in the financial hub this year.

The IPO is particularly noteworthy as it comes amid economic challenges in China, including a property crisis and declining consumer confidence. Despite these conditions, Mixue’s popularity continues to grow, with its products, including ice creams and drinks, retailing for an average of six Chinese yuan (approximately $0.82 or £0.65), appealing to budget-conscious consumers.

Founded in 1997 by Zhang Hongchao while he was a university student, Mixue has expanded rapidly from a small store in Zhengzhou, Henan province. Its full name, Mìxuě Bīngchéng, translates to ‘honey snow ice city,’ and the brand features a playful mascot named the Snow King. Today, the company boasts over 45,000 stores across China and 11 other countries, including Singapore and Thailand.

Mixue’s expansion is remarkable, surpassing the number of outlets operated by giants McDonald’s and Starbucks, which have over 43,000 and 40,576 locations, respectively. The company operates predominantly through franchisees, which is a departure from Starbucks’ model, where more than half of its stores are directly operated.

In a year marked by fluctuations in the market, Mixue’s successful debut sharply contrasts with smaller competitor Guming, whose shares fell on their first day of trading earlier this year. Additionally, the owner of another bubble tea chain, Chabaidao, also experienced a decline during its market entrance.

Mixue’s international ambitions include a successful entry into Vietnam, where it opened its first international outlet in 2018. Recently, the chain made headlines in Australia, where it has three stores, including locations in Sydney, Brisbane, and Melbourne, offering bubble teas starting at just $4.

As Mixue continues to innovate and expand its menu, which now encompasses a wide range of desserts and drinks, its leadership, including Zhang Hongchao and his brother Zhang Hongfu—who collectively hold a significant net worth—are poised to capitalize on their growing market presence. The recent market performance and planned expansions suggest that Mixue is positioned for further growth in the coming years.