Chinese milk tea chain Chagee has announced its plan to target a $5.1 billion valuation through a U.S. initial public offering (IPO), despite the current market volatility.
The Shanghai-based company is seeking to raise up to $411 million by offering nearly 14.7 million American depositary shares, priced between $26 and $28 each.
This move comes at a time of heightened uncertainty, as global trade tensions—especially between the U.S. and China—have led to caution in the IPO market.
While Chagee acknowledges some risks posed by tariffs, the company emphasized that its core business is not reliant on cross-border trade, with all of its products being manufactured in China.
Chagee, known for its fresh, raw-leaf milk tea, has experienced rapid expansion since its founding in 2017 by Junjie Zhang. The company now operates over 6,000 teahouses worldwide, primarily through a franchise model, and generated 29.5 billion yuan ($4.03 billion) in sales last year.
The company has also seen substantial growth in Southeast Asia, with recent expansions into Malaysia, Singapore, and Thailand, and plans to serve customers in 100 countries and sell 15 billion servings annually in the coming years.
Despite challenges, Chagee remains confident in its global expansion strategy. The IPO will be listed on the Nasdaq under the ticker “CHA,” with major underwriters including Citigroup, Morgan Stanley, Deutsche Bank, and CICC.
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