China’s Busy Ming seeks up to US$428M in Hong Kong IPO to fund snack and beverage expansion
Busy Ming aims to strengthen its low-cost snack and drink network as it tests investor demand in Hong Kong.
CHINA – Busy Ming Group, China’s largest snack and drink retailer, is seeking to raise up to HK$3.34 billion (US$428 million) through an initial public offering in Hong Kong, as it tests investor appetite for consumer-focused stocks amid a slower domestic economy.
The company plans to sell 14.1 million shares priced between HK$229.60 (US$29.46) and HK$236.60 (US$30.36), according to its prospectus filed with the Hong Kong Stock Exchange. Trading is expected to begin on January 28.
The company operates two main brands, Busy for You and Super Ming, founded by Yan Zhou in 2017 and Zhao Ding in 2019, respectively. Through a franchise-led model, Busy Ming has expanded rapidly to 19,517 stores across lower-tier cities as of September 30.
Its aggressive value strategy includes ultra-low-priced products, such as oolong tea sold at 1.9 yuan (US$0.30), which the company said in a February presentation was “about half the price of similar mainland products.”
“This broad and deep store network coverage ensures affordable and high-quality products reach consumers across all city tiers,” Busy Ming said in its prospectus, citing an industry report that named it the fastest-growing chain store in China in 2024.
The fundraising comes as consumer demand in China remains under pressure, with growth slowing across the retail sector. Busy Ming’s low-cost model mirrors those of peers such as Mixue Group and e-commerce giant PDD Holdings.
However, analysts have cautioned about the risks tied to thin margins. “Busy Ming’s business model has a low tolerance for errors,” said Xinyao Criss Wang in a note on the Smartkarma investment platform.
“Upstream cost increases, downstream price wars or a decline in operational efficiency would break through the already thin profit barrier,” Wang added.
Despite these risks, Busy Ming’s financial performance has been strong. The company said its profit for the first nine months of 2025 tripled year-on-year to 1.56 billion yuan (US$214.6 million), reflecting continued store expansion and high sales volumes.
Eight cornerstone investors have agreed to subscribe to US$195 million of the shares on offer. They include Tencent Holdings, Singapore’s Temasek Holdings, BlackRock, Fidelity Investment, Bosera International, E Fund Management, Spring Capital (Hong Kong) and Taikang Life.
Busy Ming said it will use the IPO proceeds to “improve its supply chain and product offerings, modernise stores and technology systems, enhance brand recognition and explore selective investment and acquisition opportunities.”
Goldman Sachs and Huatai International are acting as joint sponsors of the IPO.
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