Mixue Ice Cream and Tea is a Chinese company that operates more outlets than both McDonald’s and Starbucks. On Monday, the company saw its shares increase by over 40% when it began trading on the Hong Kong Stock Exchange. The company raised $444 million in the largest initial public offering (IPO) of the year in the financial hub. Mixue’s popularity comes at a time when many people in China are facing economic challenges, including a property crisis and weak consumer and business confidence. The company sells ice creams and drinks for an average price of six Chinese yuan ($0.82; £0.65). The company was founded in 1997 by Zhang Hongchao, a student at Henan University of Finance and Economics, as a part-time job to support his family’s finances. The full name of the company, Mìxuě Bīngchéng, means “honey snow ice city,” and its stores are decorated with its Snow King mascot, playing the company’s official theme tune. The company has more than 45,000 stores across China and in 11 other countries, including Singapore and Thailand, and plans to continue expanding. Mixue is often seen as China’s largest bubble tea, iced drinks, and ice cream chain and operates more like a raw-materials supplier than a traditional brand. Unlike Starbucks, which operates more than half of its stores directly, almost all of Mixue’s outlets are run by franchisees. Mixue’s successful market debut contrasts with its smaller rival, Guming, which saw its shares drop on its first day of trading in February. Shares in the owner of bubble tea chain Chabaidao also fell on their market debut last year.

Source: https://www.bbc.com/news/articles/c625n63epyzo