China’s largest bubble tea makers Mixue and Guming apply for Hong Kong IPO
- Mixue Group and Guming Holdings, China’s largest and second-largest freshly-made bubble tea chains, submitted IPO applications in Hong Kong
- China’s 486,000 bubble tea stores expected a 40 per cent sales increase in 2023, reaching 145 billion yuan (US$20.4 billion)
China’s leading bubble tea makers including Mixue Bingcheng and Guming are rushing to apply for first-time share sales in Hong Kong as companies in the fast-growing sector expand aggressively amid fierce competition.
Mixue Group and Guming Holdings, China’s largest and second-largest freshly-made bubble tea chains by store count as of 2023, submitted applications for initial public offerings (IPOs) in Hong Kong on Tuesday, Hong Kong stock exchange filings showed.
Mixue, which has roughly 36,000 stores, is looking to raise US$500 million to US$1 billion in its Hong Kong IPO, while Guming, with 9,000 shops, is aiming to raise US$300 million to US$500 million, according to a source with direct knowledge of the matter.
Guming and Mixue did not immediately reply to a request for comment.
Bubble tea is one of the few bright spots on the consumer front in China, with low-price operators doing particularly well.
According to a China Chain Store & Franchise Association study, the country’s 486,000 bubble tea stores were expecting a 40 per cent rise in yearly sales in 2023, reaching a market size of around 145 billion yuan (US$20.4 billion).
