Chagee raises US$411M in U.S. IPO amid trade tensions
The Chinese tea chain secures strong investor interest despite geopolitical concerns and delisting threats for Chinese firms in the U.S.
USA – Chinese tea company Chagee has successfully raised US$411 million through its initial public offering (IPO) on the New York Stock Exchange, pricing its American depository shares at US$28 each, according to sources cited by Reuters.
The share price landed at the top of the US$26 to US$28 per share range initially indicated to investors.
The IPO proceeds were generated from the sale of 14.7 million shares, resulting in a valuation of approximately US$5.1 billion for Chagee, based on regulatory filings.
The listing comes amid heightened geopolitical uncertainty and trade tensions between the United States and China, including concerns over U.S. tariffs and potential delisting threats facing Chinese companies on U.S. exchanges.
While Chagee acknowledged in its prospectus that tariffs may affect operations, it emphasized that cross-border trade does not represent a core component of its business. All its products are manufactured within China.
Founded in 2017, Chagee has rapidly expanded its footprint to more than 6,400 teahouses as of the end of 2024. Approximately 97% of these locations are situated in China, with additional outlets in Malaysia, Singapore, and Thailand.
The company reported sales of 29.5 billion yuan (approximately US$4 billion) in 2024. Most of its stores operate under a franchise model.
Chagee’s founder and CEO, Junjie Zhang, was inspired by the global rise of coffee culture and aimed to modernize traditional tea consumption in China.
According to regulatory filings, the company’s future vision includes expanding to 100 countries, creating 300,000 jobs globally, and serving 15 billion cups of freshly brewed tea annually.
The IPO was launched as financial markets reacted to new U.S. tariff proposals and political commentary suggesting possible removal of Chinese stocks from American exchanges.
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