Chinese bubble tea maker Mixue Group plans to raise about US$500 million from its Hong Kong initial public offering (IPO) after peer Guming Holdings completed a US$232 million upsized share sale in the city.
Mixue, China’s largest freshly made drinks firm, would begin book-building by the end of this month and list on the Hong Kong stock exchange in early March, according to Reuters on Tuesday, which cited sources.
Mixue, which has more than 40,000 stores in mainland China and overseas, received approval from the China Securities Regulatory Commission on January 7, reversing a freeze on the firm’s listing plan.
While Mixue and Guming had applied to list in Hong Kong in 2024, their applications lapsed after six months as they did not receive regulatory approval. Chinese regulators were concerned about the firms’ prospects after the shares of peer Sichuan Baicha Baidao plunged 27 per cent on debut last April following a US$330 million IPO.
Mixue plans to use the IPO proceeds to expand production facilities and enhance its brand and marketing, according to its exchange filing.
The company’s profit surged 45.2 per cent year on year to 3.5 billion yuan (US$478.96 million) in the first nine months of last year.
