A little over a week after it was reported that Mixue Group, owner of Mixue Bingcheng (or Mixue Ice Cream & Tea), was about to go public in Hong Kong via IPO, it did so with great fanfare. Not only did it go public, but Mixue also broke the “below issue price curse” that haunted all three “New Style Chinese Tea” chains that are listed in Hong Kong.
On 3 March, the share price of Mixue went up nearly 30% as trading started, it closed at 43.2% at 290 HKD (37.29 USD) per share and also pushed the market value of Mixue to over 100 billion HKD (12.86 billion USD). It is now worth 4 Goodmes, 7 ChaPandas and 30 Naixues.
- #蜜雪冰城上市开盘大涨百分之30 Mixue share price surges 30% as trading begins: over 1 million views on Rednote, ranking on the Hot Spot list.
Founded in 1997, Mixue has over 46,000 shops across the globe and is known for its low prices and personable mascot and IP, the Snow King. The confidence from the market is not only for its current popularity but its optimised supply chain, from manufacturing ingredients to powerful logistics, even in small towns and villages.
Pundits believe that “new consumption” that includes tea and coffee chains has now moved beyond branding and narrative into core competitiveness, i.e. the ability of sustainable profit.
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