China Tea Drinks Brand Mixue Shares Surge 40% in Hong Kong Debut
On March 3, China's largest tea drinks chain, Mixue Group rang the bell and was listed on the Hong Kong Stock Exchange at an issue price of HKD 202.5 (CNY 189.9) per share. As of press time, the share price has risen by 40% and is currently quoted at HKD 292 (CNY 274) per share, with a total market value exceeding HKD 100 billion (CNY 94 billion).
On February 21, Mixue Group officially launched its IPO. This time, it plans to globally offer 17.0599 million shares, of which 15.35 million shares (subject to reallocation) are for international offering and 1.706 million shares (subject to reallocation) are for Hong Kong offering.
The cornerstone investors of Mixue Group are M&G Investments (Yingzhuo Investment Management), HongShan Growth (Sequoia Capital China), Persistence Growth under Boyu Capital, HHLR Fund under Hillhouse Capital, and Long-Z Fund I under Longzhu, subscribing for a total of USD 200 million (HKD 1.558 billion).
Public data shows that as of December 31, 2024, Mixue Group has 46,479 stores; the annual beverage output is about 9 billion cups, a year-on-year increase of 21.9%; the terminal retail sales amount to about CNY 58.3 billion, a year-on-year increase of 21.7%.
The global ready-to-drink beverage industry is facing important growth opportunities. Measured by terminal retail sales, the global market size of ready-to-drink beverages increased from USD 598.9 billion (CNY 4366.6 billion) in 2018 to USD 779.1 billion in 2023, with a compound annual growth rate (CAGR) of 5.4%. The CAGR from 2023 to 2028 is expected to further increase to 7.2%, driving the market size to grow to USD 1.1039 trillion in 2028, accounting for nearly half of the global beverage market share.
In September 2018, Mixue Group opened its first overseas store, in Vietnam, thus embarking on its journey overseas. The prospectus shows that as of September 2024, Mixue Group has 4,800 overseas stores, covering eleven countries including Vietnam, Indonesia, Malaysia, Thailand, the Philippines, Cambodia, Laos, Singapore, Australia, South Korea, and Japan, most of which are located in the Southeast Asian market.