Why and how was Mixue Ice cream & tea IPO so successful?
On 3 March 2025, China’s Mixue Ice Cream & Tea listed on the Hong Kong Stock Exchange (HKEX), opening at HK$262 ($33.72) per share.
Why Did Mixue Choose to Go Public?
The company raised $3.5 billion HKD ($450m) through its IPO. It cited three key reasons for raising the funds:
Global Expansion – Enhancing international market visibility and influence.
Access to International Capital – Attracting high-quality global investors to optimize capital structure and governance.
Market Positioning & Talent Attraction – Strengthening its industry leadership and offering stock incentives for overseas talent.
Record-Breaking IPO Performance
Mixue’s IPO attracted overwhelming investor interest, setting a new Hong Kong stock market record for retail subscriptions.
The IPO saw 5,258x oversubscription, with $1.82 trillion HKD ($234 billion) in total subscription funds, surpassing Kuaishou's 2021 record.
Top-tier cornerstone investors included M&G Investments, Sequoia China, Boyu Capital, Hillhouse, and Meituan Long-Zhu Fund, collectively subscribing to $200 million worth of shares.
Within a day of listing, the share price had grown 42%. As of yesterday, March 7, the shares were 76% higher than their original selling price, valuing the company at $110.6 billion HKD ($14.2 billion)
From a Small Street Shop to the World’s Largest Fast Food China
From humble beginnings in 1997 in Zhengzhou, Mixue now has 46,679 stores in 11 countries, surpassing global giants like Starbucks and McDonald’s in store count, to take the fast food throne globally.
China’s ready-made drink market is growing rapidly - per capita annual consumption is expected to double from 22 cups in 2023 to 51 cups in 2028.
The market size for ready-made drinks in China is projected to reach ¥1.16 trillion ($160 billion) by 2028.
Strategic Growth: Penetrating Lower-Tier Cities
57.2% of Mixue’s stores are in third-tier cities and below, covering 4,900+ townships.
Mixue focuses on low-cost, high-efficiency store models with modular design and digitalized operations.
Unlike premium tea brands, Mixue positions itself as an "infrastructure-level" beverage chain, focusing on affordability and scalability.
International Expansion & Supply Chain Strength
Although 90% of Mixue’s stores are in China, the chain is now present in 11 countries, and has become Southeast Asia’s largest made-to-order tea brand. It is also in Japan, South Korea and Australia which have a high number of Chinese tourists or migrants.
Plans include building a global supply chain to support international growth, with a new logistics hub in Southeast Asia.
The company has five large production bases in China, covering a 7.3 million square metre (79m sq. ft) area, producing over 60% of its raw materials in-house.
Winning Formula: High-Quality, Low-Priced Drinks
Best-selling products include:
¥2 (28c) lce cream cones
¥4 (55c) lemon Water (accounting for 80% of China’s ready-made lemon water market)
¥6 (83c) bubble tea
Mixue owns the largest supply chain network in China’s tea drink industry, controlling 100% of its core ingredients.
The company is China’s largest lemon buyer, sourcing around 105,000 tonnes annually.
Branding with “Snow King” IP
Mixue has successfully personified its mascot, "Snow King", creating viral content:
The "You Love Me, I Love You" theme song gained 195+ billion views across platforms.
Animated series "Snow King Arrives" surpassed 2.2 billion views.
The brand positions "Snow King" as a source of simple, joyful experiences, resonating with mass consumers.
Looking Ahead
Mixue remains committed to its "high-quality, low-price" strategy, mass market appeal, and long-term supply chain investments. Its stock code 02097 reflects its goal of becoming a respected 100-year brand by 2097.
With its unique business model, international expansion, and affordability-driven strategy, Mixue aims to redefine the global ready-made beverage industry. With the help of the IPO cash-injection, it may just do that!
