China's Milk Tea Chain Chagee Files For Nasdaq IPO Under 'CHA,' Taking On Starbucks In Growing Market

Chagee Holdings Limited, a premium tea drink brand, has filed with the Securities and Exchange Commission to list its ADSs on the Nasdaq Global Select Market under the ticker “CHA.” The company aims to fuel its expansion in the growing freshly-made tea drinks market through this IPO.  

Founded in 2017, Chagee has grown rapidly. As of Dec. 31, its network included 6,440 teahouses, with 6,284 in China, making it the largest network among premium brands in the country. The company reported approximately RMB 29.5 billion ($4.06 billion) in total Gross Merchandise Value for 2024, a 173% increase from 2023.  

Chagee emphasizes “tea tech,” integrating digital and automation to enhance operations. The company operates as a Cayman Islands holding company with subsidiaries in China and elsewhere.

The IPO’s size and pricing details are yet to be disclosed. Citigroup, Morgan Stanley, Deutsche Bank, and CICC are among the underwriters.

The company competes in the fast-evolving freshly made tea market against established players with more resources. It also vies with food and beverage operators, including Starbucks Corp. SBUX, for premium beverage sales.

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