Bubble-Tea Giant Mixue Surges 43% After HK’s Biggest IPO of Year

Mixue Group, China’s largest bubble-tea chain, surged in its Hong Kong trading debut after individual investors flocked to the company’s blockbuster HK$3.45 billion ($444 million) initial public offering.

The stock closed up 43% on Monday after being sold at HK$202.50 apiece during the IPO. The deal became so sought after that Hong Kong individual investors applied to borrow more than HK$1.8 trillion to buy the stock, a record for margin loans. The flood of applications led underwriters to stop taking orders a day earlier than planned, people familiar with the matter said.

The popularity of the stock helps ...