In a remarkable debut on the Hong Kong Stock Exchange, Mixue, a Chinese bubble tea chain that surpasses Starbucks in size, witnessed its shares surge by over 40%. This surge marked a significant milestone as the company raised a substantial $444 million in what became the financial hub’s most substantial initial public offering (IPO) of the year.

Mixue Ice Cream and Tea, although relatively unknown to many, boasts a widespread presence with more outlets than even McDonald’s and Starbucks. The company’s success in the stock market occurred against the backdrop of China’s economic uncertainties, including challenges such as a property market crisis and wavering consumer and business confidence. Offering ice creams and beverages averaging six Chinese yuan per item, Mixue has positioned itself uniquely in the market.

Founded in 1997 by Zhang Hongchao, a student at Henan University of Finance and Economics, Mixue initially started as a part-time venture aimed at assisting his family financially. The brand’s full name, Mìxuě Bīngchéng, translates to “honey snow ice city,” with its stores characterized by the presence of the Snow King mascot and the continuous play of the company’s official theme tune. With a staggering presence of over 45,000 stores spanning China and 11 other countries, including Singapore and Thailand, Mixue has outlined ambitious plans for further expansion.

While McDonald’s boasts “over 43,000 locations” and Starbucks operates 40,576 outlets globally, Mixue has differentiated itself by functioning more as a raw materials provider rather than a conventional brand. Unlike Starbucks, which directly manages a majority of its stores, Mixue predominantly relies on franchisees to operate its outlets, showcasing a distinct operational model.

The success of Mixue’s market debut stands in stark contrast to its smaller competitor Guming, which experienced a decline in share value during its initial trading day in February. Similarly, the owner of the bubble tea chain Chabaidao witnessed a drop in shares upon its market debut last year, prompting questions about the sustainability of China’s bubble tea market.

As Mixue continues to soar in the stock market, surpassing expectations and establishing itself as a formidable player in the food and beverage industry, its trajectory underscores the dynamic nature of the Chinese market and the evolving consumer preferences within the region.