On March 3, 2025, the Mixue Group, well-known for its Chinese dessert franchise and bubble tea brand, Mixue Bingcheng, made its much-anticipated debut on the Hong Kong Stock Exchange, marking the largest initial public offering (IPO) of the year.
The stock began trading at 262 Hong Kong dollars (approximately 49,000 Korean won), which is significantly above its offering price of 202.5 Hong Kong dollars (around 38,000 Korean won). Investors showed immediate enthusiasm for the stock, which peaked at 298 Hong Kong dollars—a staggering 47.1% increase from the initial offering.
On March 4, 2025, the stock settled at 289.6 Hong Kong dollars, reflecting continued strong interest from both institutional and retail investors. Some reports indicate the price was at 292 Hong Kong dollars as of 11:19 AM on the same day.
The IPO generated approximately 3.455 billion Hong Kong dollars (around 650 billion Korean won), cementing its status as the largest IPO on the Hong Kong exchange for the year. This performance can be attributed to the overwhelming interest from local investors, which led to record-high borrowing for stock subscriptions, exceeding 1.8 trillion Hong Kong dollars.
According to Bloomberg, the financial windfall has significantly boosted the fortunes of Mixue Group's founders, brothers Zhang Hongchao and Zhang Hongfu, whose net worth rose to 8.1 billion US dollars, surpassing even the former CEO of Starbucks, Howard Schultz.
Mixue Bingcheng, the brand at the heart of the company’s success, was launched back in 1997 when Zhang Hongchao opened his first ice cream stall at low prices as a college student. Over the years, as bubble tea gained skyrocketing popularity, Mixue’s unique offering of drinks and desserts at affordable prices drew substantial consumer interest.
Currently, the Mixue Bingcheng chain boasts 45,282 stores globally, outpacing powerhouse competitors like McDonald's, which has 43,477 outlets, and Starbucks, with 41,199. Impressively, nearly 90% of these outlets are located within China, with the remaining spreading across smaller markets such as South Korea, Japan, and Australia.
The rapid growth of Mixue Bingcheng has been noteworthy. Just three years prior, the chain had not yet expanded beyond 20,000 stores, showcasing growth of over 126%. Analysts attribute this success to Mixue’s dual strategy of affordability and simplicity, which captures the attention of cost-conscious consumers. With beverages and ice creams priced around 6 yuan (approximately 1,200 Korean won), Mixue has successfully catered to the demand for value.
“People are seeking value-for-money products,” noted Hernan Chui, an analyst at the research firm Gabe Cal Dragonomics, which underlines the brand’s fantastic reception. The strategy employed by Mixue—where the company directly supplies raw materials and equipment to its franchisees—has also played a pivotal role in maintaining operational efficiency and profit margins.
The product lineup includes popular items such as various flavors of bubble tea, ice cream cones, and signature lemonades. This variety, combined with low costs and streamlined menus, has efficiently drawn customers to the stores.
Mixue’s expansion isn't just confined to China; it has also officially established itself in international markets, including South Korea, since 2022 when it opened its first store near Chung-Ang University located in Heukseok-dong, Dongjak-gu, Seoul.
Despite naturally strong domestic competition, the Mixue Group's strategic pricing and attractive product offerings have allowed it to thrive and expand both within China and abroad. Industry analysts are keeping close tabs on its operations, especially as the company continues to navigate the intricacies of international markets, making it one of the few Chinese brands successfully approaching global scale.
With both short-term gains from the stock market debut and long-term growth strategies, Mixue Group is poised to solidify its position not just as one of the largest beverage and dessert franchises, but as a significant contender on the international culinary scene.