Shares of China’s largest tea water business Mixue surged more than 40% in its debut on Monday after its initial public offering was oversubscribed.
It was last seen trading up about 41% at $36.52 each compared to the IPO offering price of $26.05 per share.
The Mixue brand, known for its milk tea, fruit drinks, ice cream and coffee, offered 17.06 million shares in the IPO and raised a total of $443.67 million.
Shares of other Chinese beverage companies listed on the Hong Kong market traded lower on Monday, erasing early gains with Nayuki down 6.2%, Sichuan down 5.5% and Guming down 3.3%.
The IPO has the backing of five core investors, including M&G Investment, HongShan Growth, Persistence Growth Limited, HHLR Fund and Meituan Long-Z Fund.
Mixue shares are in hot water with the Hong Kong offering being oversubscribed by more than 5,200 times. The international offering was oversubscribed by more than 35 times.
