Chinese tea chain Chagee has filed for a U.S. initial public offering and is planning to trade on the Nasdaq under the ticker symbol “CHA.” Founded in 2017, the company has rapidly expanded to over 6,400 teahouses in China, Malaysia, Singapore, and Thailand, with a focus on modernizing the tea drinking experience. Chagee reported net income of $344.5 million from $1.7 billion in revenue in 2024. The company aims to open its first U.S. store in Los Angeles this spring.
The founder and CEO of Chagee, Junjie Zhang, was inspired by the success of international coffee chains like Starbucks and aims to make Chagee a global brand. The company’s goal is to serve tea lovers in 100 countries, create 300,000 job opportunities, and deliver 15 billion cups of freshly brewed tea annually. However, Chagee’s IPO comes at a time when the number of Chinese companies seeking U.S. listings is declining due to political tensions between the U.S. and China.
Investor concerns may also arise due to the example set by Luckin Coffee, a Chinese company that faced a scandal in 2020 for inflating its sales figures and was subsequently delisted from the Nasdaq. Despite this setback, Luckin has since emerged from bankruptcy and surpassed Starbucks as the largest coffee retailer in China by sales. Investors may view Chagee’s IPO with caution given the past experiences of Chinese beverage chains in the U.S. market.
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