Mixue Ice Cream and Tea, although relatively unknown outside China, has outpaced major brands like McDonald's and Starbucks with over 45,000 outlets globally. The bubble tea and ice cream chain's shares soared by 40% upon debuting on the Hong Kong Stock Exchange, marking it as the largest IPO of the year in that financial hub. Raising $444 million, the success is especially notable amid ongoing economic challenges in China, including a property crisis and dwindling consumer confidence.
Founded in 1997 by student Zhang Hongchao as a means to support his family, Mixue, or “honey snow ice city,” offers affordable treats, averaging six yuan ($0.82). With locations not only dispersed across China but also in nations like Singapore and Thailand, Mixue continues to expand its footprint. While operating vastly as a franchise model, unlike its competitor Starbucks—which maintains direct control over many of its shops—Mixue’s rapid growth highlights its appeal in the bubble tea market.
As Mixue celebrates this successful launch, it contrasts sharply with other recent IPOs in the sector, such as rival Guming, whose shares fell on their opening day. With the bubble tea culture rising, questions loom about its sustainability amidst China's economic landscape as industry observers ponder the future of this popular beverage segment.
