Staff Reporter
Chinese bubble tea chain Chagee has officially filed for an initial public offering (IPO) in the United States, aiming to trade on the Nasdaq under the ticker symbol “CHA.”
This announcement comes as the company prepares to launch its first U.S. location in the Westfield Century City mall in Los Angeles this spring.
Founded in 2017, Chagee has expanded rapidly, boasting over 6,400 teahouses across China, Malaysia, Singapore, and Thailand as of December 31. Notably, about 97% of its outlets are located in China.
In its latest regulatory filing, the company reported a net income of $344.5 million from revenues totaling $1.7 billion for the year 2024.
Chagee’s founder and CEO, Junjie Zhang, aimed to modernize tea drinking, drawing inspiration from the success of international coffee brands. Notably, China serves as Starbucks’ second-largest market.
Looking to the future, Chagee has ambitious goals: to serve tea lovers in 100 countries, create 300,000 jobs worldwide, and deliver 15 billion cups of freshly brewed tea annually, as stated on the company’s website.
Should Chagee successfully go public on the Nasdaq, it will join a shrinking group of Chinese firms pursuing U.S. listings. However, U.S. investors may proceed with caution, particularly in light of Luckin Coffee’s past troubles.
Luckin, founded in 2017, rapidly expanded and, by 2019, had surpassed the number of Starbucks locations in China before going public on the Nasdaq.
However, in 2020, the company revealed it had inflated its sales figures, leading to its delisting and a Chapter 15 bankruptcy filing. After emerging from bankruptcy in 2022, Luckin has since reclaimed its position as China’s largest coffee retailer by sales.
