đ From street stall to stock exchange: Xiao Noodles, a SichuanâChongqing noodle chain from Guangzhou, has become the first publicly listed noodle-restaurant stock in Hong Kong. The IPO raised around HKD 617 million (â USD 79 million).
đ„” Too spicy to hold: Despite being oversubscribed 426 times and seeing strong demand from institutional investors, the stock fell by more than 28% on its first trading day, as many buyers sold immediately to lock in quick profits.
đ +176% growth: Revenue nearly tripled in just two years, jumping from ~USD 58 million in 2022 to ~USD 160 million in 2024. H1 2025 delivered another strong performance with +33.8% YoY revenue growth and profits up +132%.
đȘÂ Aggressive expansion: The noodle network grew from 133 to 465 stores in just three years. Another 115 outlets are currently under construction. The 500th store is set to open in Singapore later this year, marking the start of international expansion.
đ€Â Heavyweight anchor investors: Cornerstone investors include Hillhouse (HHLR) and hot-pot giant Haidilao. Even so, the companyâs fundamentals were not strong enough to absorb the initial selling pressure.
Background
Xiao Noodles is part of a broader IPO wave in Chinaâs ânew consumptionâ sector. From milk-tea chains and lifestyle retailers to fast-food brands, more and more consumer companies are heading to the stock markets in Hong Kong and the US.
This is a strategic policy shift: domestic consumption is meant to become a new pillar of growth, while traditional industrial and export-driven models are losing momentum. Despite rapid expansion, rising profits, and high-profile anchor investors, long-term oriented buyers lacked conviction at the market debut.
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