Mixue Ice Cream and Tea, a Chinese bubble tea chain with more outlets than McDonald’s and Starbucks, saw its shares surge by over 40% on its Hong Kong Stock Exchange debut on March 4, 2025. The company raised $444 million in the largest IPO of the year in Hong Kong, highlighting its strong market presence despite economic challenges in China.
Mixue Ice Cream and Tea, China’s largest bubble tea and ice cream chain, made a remarkable entry on the Hong Kong Stock Exchange on March 4, 2025. The company, which has more outlets than McDonald’s and Starbucks, saw its shares jump by more than 40% on debut, raising $444 million in what became the financial hub’s largest initial public offering (IPO) of the year.
Founded in 1997 by Zhang Hongchao, a student at Henan University of Finance and Economics, Mixue Ice Cream and Tea started as a small business to support his family. Over the years, it has grown into a dominant player in the food and beverage industry, offering affordable ice creams and drinks at an average price of six Chinese yuan ($0.82). The company currently operates over 45,000 stores across China and 11 other countries, including Singapore and Thailand.
Unlike Starbucks, which directly operates over half its stores, Mixue follows a franchise model, functioning more as a raw-materials supplier than a traditional brand. This strategy has contributed to its rapid expansion and cost-effective operations. The firm’s strong IPO performance stands in contrast to smaller rival Guming, which saw its shares decline on its first day of trading in February. Similarly, the owner of the bubble tea chain Chabaidao also faced a stock dip on its debut last year.
As Mixue continues its expansion, its market presence highlights the growing global appeal of bubble tea and affordable beverages, even amid economic challenges in China, such as a property crisis and weak consumer confidence. The success of Mixue’s IPO reflects strong investor confidence in the brand’s business model and future growth potential.
