Have you ever drunk milk tea from Michelle Bingcheng? Founded in 2009, this tea brand quickly became popular all over the country with its sweet taste and cute image, becoming a favorite among young people. Today, Michelle Ice City has more than 3With 20,000 stores at home and abroad, it is one of the leading enterprises in China's tea market.
However, what you may not know is that Mixue Bingcheng is planning a big event - an initial public offering (IPO) in Hong Kong next year. This means that Mixue Bingcheng will no longer be listed in the A** field, but will choose the Hong Kong ** market, which is a rare move in the tea industry.
The main reasons for the IPO of Mixue Bingcheng in Hong Kong are as follows:
It is difficult to list the A** market. It is reported that Mixue Bingcheng submitted a prospectus in September 2022, planning to land on the main board of the Shenzhen Stock Exchange and plan to raise 649.6 billion yuan. However, since the listing system of the A** market still implements the review system (approval system) for listing, that is, the new share issuance review committee of the China Securities Regulatory Commission can only be issued and listed after it has been reviewed and approved from various perspectives such as industry background, business model, marketing, performance sustainability, financial management, and legal risks. Moreover, it is reported that the regulatory authorities will impose industry restrictions on the main board declaration under the approval system, restricting industries such as food and restaurant chains. As a result, the listing process of Mixue Bingcheng has been delayed for a long time, and it is even reported that Mixue Bingcheng has withdrawn its listing application12.
The listing mechanism of the Hong Kong ** market is flexible. In contrast, the listing mechanism of the Hong Kong ** market is more flexible and adopts a registration-based system, which is the same as the common practice in the global mainstream market. The registration system refers to a system in which the applicant for issuance discloses all information and materials related to the issuance in accordance with the law, makes legal documents and sends them to the competent authority for review, and the competent authority is only responsible for reviewing whether the information and materials provided by the applicant have fulfilled the obligation of information disclosure. The registration system is a formal review, as long as it meets the conditions stipulated in the ** law, it can be IPO on its own, and it does not require the consent of the CSRC, as long as it is filed according to the regulations3. In this way, Mixue Bingcheng can complete the listing process more quickly without worrying about being stuck in the review process.
The valuation level of the Hong Kong ** market is high. Another reason is that the valuation level of the Hong Kong ** market is higher than that of the A** market, which means that Mixue Bingcheng can obtain higher market recognition and more raised funds. According to reports, Mixue Bingcheng plans to conduct an IPO in Hong Kong next year to raise about US$1 billion4, which is 649.6 billion yuan is nearly doubled. Moreover, investors in the Hong Kong market are more rational and mainly invest in value and public stocks to obtain value and dividends5. This is also an attraction for a growing enterprise like Mixue Bingcheng.
The advantages of Mixue Bingcheng's IPO in Hong Kong are mainly in the following aspects:
Enhance your brand. The IPO of Mixue Bingcheng in Hong Kong can take advantage of Hong Kong's status as an international financial center to enhance its brand influence and popularity, and increase the recognition and trust of the international market. This is of great significance to the overseas expansion and internationalization strategy of Mixue Bingcheng. At present, Mixue Bingcheng has about 1 10 stores overseas, covering Southeast Asia, Europe, America and other countries and regions6. In the future, Mixue Bingcheng is also expected to enter more overseas markets and compete with international tea brands.
Optimize the capital structure. Through the IPO in Hong Kong, Mixue Bingcheng can optimize its capital structure, reduce financial risks and enhance its ability to resist risks by raising funds. According to the prospectus, the asset-liability ratio of Mixue Bingcheng will be in 2019, 2020, and 2021, respectively. 77%, which is not high, but not low either. Through the IPO in Hong Kong, Mixue Bingcheng can use the raised funds to repay part of its debts, increase the proportion of its own funds, reduce financial leverage, and improve capital efficiency7.
Accelerate your business. In its IPO in Hong Kong, Mixue Bingcheng can use the raised funds to accelerate its business development, enhance its competitive advantage and enhance its market share. According to the prospectus, Mixue Bingcheng plans to use 50% of the raised funds to open new stores, 25% to upgrade existing stores, 15% to develop new products and enhance brand image, and 10% to supplement working capital and general corporate purposes7. Through these investments, Mixue Bingcheng can further expand its scale, improve its product quality and service level, enhance its brand power, and consolidate its leading position in the tea market.
The IPO of Mixue Bingcheng in Hong Kong is a bold and wise decision. It can not only avoid the difficulty of listing in the A** market, but also enjoy the listing advantages of the Hong Kong ** market, and provide more impetus and space for its own development. This move also sounded the alarm bell for the Shenzhen Stock Exchange, reminding it that it needs to reform and improve its listing system in order to attract more high-quality enterprises and enhance its market vitality and competitiveness. Honey Snow Ice City