Chagee, the popular Chinese bubble tea chain, has successfully gone public on the Nasdaq, raising an impressive USD 411 million in its IPO. This marks the second-largest Chinese IPO in the U.S. in three years, following the May debut of Zeekr.
The Shanghai-based company offered 14.68 million American depositary shares at USD 28 each, continuing its rapid growth since its 2017 founding.
With over 6,440 stores globally, Chagee’s expansion reflects its strong financial performance, boasting a net income of RMB 803 million in 2023 and a remarkable year-on-year surge of 213%, projecting revenues of RMB 2.5 billion in 2024.
Five top law firms, including Davis Polk, King & Wood Mallesons, Maples Group, Fangda Partners, and Cleary Gottlieb, played key roles in advising Chagee during its listing process.
Meanwhile, seven underwriters, such as Citigroup, Morgan Stanley, and Deutsche Bank, guided the company through the legal intricacies of the offering.
Despite the challenges posed by U.S.-China trade tensions and high tariffs, Chagee’s IPO signals confidence in the bubble tea market, as the brand looks to expand its global footprint.
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