(Yicai Global) Oct. 8 -- Chinese budget ice cream and tea brand MXBC is moving forward with its plan to go public on the mainland and has hired GF Securities to take it through the mandatory tutoring process, the country’s securities regulator said on Sept. 30.

MXBC is said to be worth around CNY20 billion (USD3.1 billion) after it obtained CNY2 billion (USD310.1 million) in financing last August from Hillhouse Capital Group and Longzhu Capital. However, the two venture capital firms have since pared their stakes, leaving them with 4 percent equity each.

MXBC is well known for its tasty products and cheap prices. Its ice creams, which it sources and makes itself, are priced at CNY2 (USD0.31) a pop and lemonades at CNY4. The company opened 314 new outlets last month, bringing its nationwide tally to 17,958, according to statistics by spatial data platform GeoHey. Many of MXBC’s outlets, however, were fined recently for food quality issues.

Founding brothers Zhang Hongchao and Zhang Hongfu hold a 47.5 percent stake in the Zhengzhou, central Henan province-based chain.

Editor: Kim Taylor