Mixue gears up for $3.45 billion IPO, kicks off bookbuilding

China’s fresh fruit drink giant Mixue Group kicked off bookbuilding on Friday at HK$202.50 apiece, with a minimum investment of HK$20,454.22 per board lot of 100 shares.

The company plans to issue a total of 17.06 million shares, with 10 percent for the retail tranche, to raise about HK$3.45 billion from its Hong Kong listing.

Mixue has secured five cornerstone investors that include M&G Investments and HongShan Growth, pooling a combined investment of US$200 million (HK$1.56 billion).

The company aims to use 66 percent of net proceeds to continue expanding its end-to-end supply chain and 12 percent to build and promote its brand and intellectual property.

In addition, 12 percent of the funds will be used to strengthen digitalization and intelligence capabilities across its operations while 10 percent will be allocated as working capital and for general corporate purposes.

Mixue is expected to debut in Hong Kong on March 3.

The company, which sells ice cream for 3 yuan (HK$3.21) and lemonade for 7 yuan, has the most expansive global network among fresh drinks makers, with 40,510 stores in China and 11 other countries as of September 2024.

STAFF REPORTER