Hong Kong: Mixue Ice Cream and Tea, a Chinese bubble tea giant with more outlets than McDonald’s and Starbucks, saw its shares jump nearly 30% as trading commenced on the Hong Kong Stock Exchange.
The company raised $444 million (£352 million) in Hong Kong’s largest initial public offering (IPO) of the year. Mixue’s success comes as China faces economic challenges, including a property crisis and weak consumer and business confidence. Its affordable pricing—averaging six Chinese yuan ($0.82; £0.65) per item—has contributed to its widespread popularity.
Founded in 1997 by Zhang Hongchao, then a student at Henan University of Finance and Economics, Mixue began as a part-time venture to support his family. The company’s full name, “Mìxuě Bīngchéng” (honey snow ice city), is reflected in its store design, which features its Snow King mascot and continuously plays its official theme song.
With over 45,000 stores across China and 11 other countries, including Singapore and Thailand, Mixue has outpaced McDonald’s (43,000+ locations) and Starbucks (40,576 outlets).
Despite its reputation as China’s largest bubble tea, iced drinks, and ice cream chain, Mixue primarily operates as a raw-material supplier rather than a traditional brand. Unlike Starbucks, which directly manages more than half of its outlets, nearly all Mixue stores are franchise-operated.
Mixue’s strong market debut contrasts with its smaller rival Guming, which saw its shares decline on its first trading day in February. Similarly, shares of Chabaidao, another bubble tea chain, also fell upon their market debut last year.
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