Mixue Bingcheng’s Hong Kong IPO Sets New Record with Massive Oversubscription
Go Wire
February 26, 2025
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Mixue Bingcheng’s IPO in Hong Kong has drawn overwhelming demand, with the public offering oversubscribed by an astonishing 5,125 times, attracting HK$17.7 trillion in pledged funds. This marks the highest oversubscription in Hong Kong’s history, shattering Kuaishou’s HK$1.26 trillion record in 2021. Other recent IPOs, such as Bloks (HK$877.5 billion) and Maogeping (HK$173.8 billion), were left far behind. Futu Securities led the subscriptions with HK$1.06 trillion, accounting for 59% of the total, reflecting strong investor enthusiasm for consumer brands.
The success of Mixue Bingcheng highlights the growing appeal of Chinese consumer companies in the Hong Kong market. In recent years, leading tea chains like Nayuki, ChaBaiDao, and Gu Ming have gone public to fund expansion, strengthening investor confidence in China’s food and beverage sector.
With over 46,000 stores worldwide, Mixue Bingcheng dominates the affordable tea market, selling drinks at an average price of RMB 6. The company expects to sell 9 billion cups in 2024, generating RMB 58.3 billion in retail sales—far exceeding Nayuki’s 5 billion and Gu Ming’s 6.8 billion. Five cornerstone investors, including Sequoia, Hillhouse, and Meituan DragonBall, secured 45% of the IPO shares, in contrast to ChaBaiDao and Gu Ming, which launched without cornerstone backing.
Mixue Bingcheng’s growth has been fueled by its deep penetration into smaller cities, where 70% of its stores are located. By leveraging an extensive store network and a cost-efficient model, it has built a strong competitive edge, with operations spanning 11 countries as of Q3 2024.
Beyond its retail presence, Mixue Bingcheng operates as a supply chain giant. Its "light-asset" model relies on five self-built production bases and an in-house logistics network, keeping costs at just 65% of the industry average. The company’s prospectus reveals that franchisee sales of raw materials and equipment contributed RMB 18.2 billion in revenue in the first three quarters of 2024, accounting for 97.6% of total earnings. This integrated system, where franchise growth drives supply chain efficiency, has been key to its profitability and market dominance.