Chinese Tea Chages Chagee files for us ipo

The Chinese Chagee tea chain has applied for an initial US public offering on Tuesday, striving to trade on NASDAQ using “CH”.

The IPO submission comes when the company is preparing to open its first US store in the Westfield Century City mall in Los Angeles this spring.

Since its founding in 2017, the company has grown to over 6,400 tea houses in China, Malaysia, Singapore and Thailand, as of December 31, according to a regulatoryS Approximately 97% of its seats are in China.

Chagee said he had generated a net income of $ 344.5 million from $ 1.7 billion in 2024 revenue.

The founder and CEO Junjie Zhang created the chain to modernize drinking tea after being inspired by the success of international coffee companies, according to a regulatory submission. China is the second largest Starbucks market.

Looking forward, Chagee wants to “serve tea lovers in 100 countries, to generate 300,000 employment opportunities worldwide and to deliver 15 billion glasses of freshly cooked tea annually,” according to the company’s website.

If Chagee becomes publicly available to NASDAQ, it will join the declining number of Chinese companies looking for an American list. From January 2023 to January 2024, the number of Chinese companies listed on the three largest exchanges in the United States has dropped by 5%as per The US Economy and Security Review Commission in ChinaS

As relations between the US and Beijing became more glorious, political control imposed the hopes of some Chinese IPO companies in the United States. Shane now plans London IPO for later this year Legislators pulled back About his plans to publish publicly on the US Exchange.

US investors can also be cautious to invest in another Chinese beverage chain following the example determined by Luckin Coffee.

Luckin was founded in 2017 and grows rapidly. By 2019, it was superior to the number of Starbucks places in China and is publicly available to NASDAQ.

But in 2020 Lukin revealed he had inflates their saleswhich leads to its erase from Nasdaq. The company applied for bankruptcy of Chapter 15. Onion appeared from bankruptcy until 2022, minus the leaders responsible for the fraud.

Since then, he has outpaced Starbucks as the largest coffee merchant in China through sales.