Investing.com-- Shares of China’s largest bubble tea and drinks chain, MIXUE Group (HK:2097), surged in their Hong Kong trading debut on Monday, following a $444 million initial public offering.
The stock rose as much as 42% to HK$287, significantly above the IPO price of HK$202.5, outperforming the Hang Seng index’s 1.8% rise.
As of 03:54 GMT, Mixue stock was trading 38.6% higher at HK$280. It opened at HK$262.50.
Public filings showed that retail investor demand was extraordinary, with subscriptions exceeding available shares by 5,258 times, making it one of Hong Kong’s most popular IPOs.
Founded in 1997, Mixue operates over 45,000 stores globally, surpassing both Starbucks (NASDAQ:SBUX) and McDonald’s (NYSE:MCD) in store count.
The company utilizes a franchise model, generating almost all of its revenue from selling goods and equipment to franchisees, supported by a vertically integrated supply chain.