Mixue Group is set to launch bookbuilding for its Hong Kong IPO by late February, with trading on the bourse targeted in early March, Reuters reported Tuesday, citing sources privy to the matter.

Sources said the Chinese bubble tea chain is aiming to raise about $500 million, scaling back from the initial target of $1 billion as the company is not in desperate need of cash, according to the report.

Mixue intends to use IPO proceeds to expand production and diversify its drink offerings, Reuters wrote.

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