Chinese tea chain Chagee has filed for a U.S. initial public offering to trade on the Nasdaq with the ticker “CHA.” The company, founded in 2017, has over 6,400 teahouses across China, Malaysia, Singapore, and Thailand, with plans to open its first U.S. store in Los Angeles. Chagee reported revenue of $1.7 billion in 2024 and aims to serve tea lovers in 100 countries, generate employment opportunities, and deliver 15 billion cups of tea annually.
The decision to go public in the U.S. comes at a time when Chinese companies seeking U.S. listings have decreased due to political tensions between the U.S. and Beijing. Some Chinese companies have turned to other markets, like Shein planning a London IPO. U.S. investors may also be cautious following the example of Luckin Coffee, which inflated sales, leading to its delisting from the Nasdaq and bankruptcy filing. However, Luckin has since reemerged as China’s largest coffee retailer by sales.
Chagee’s founder and CEO, Junjie Zhang, created the chain to modernize tea drinking, inspired by the success of international coffee companies like Starbucks. The company’s goal is to expand globally, creating employment opportunities and providing freshly brewed tea to customers around the world. If successful, Chagee will join a select group of Chinese companies listed on the Nasdaq, maintaining a focus on growth and innovation in the competitive beverage industry.
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