BUSINESS

Popular Milk Tea Chain Chagee Gets Go-Ahead for U.S. Listing

Published: Mar. 7, 2025 11:08 p.m. GMT+8

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Chagee has been aggressively expanding at home and overseas, opening more than 2,000 new stores in 2023

Chinese milk tea chain Chagee Holdings has won approval from Beijing to proceed with an initial public offering (IPO) in the United States, joining a growing wave of consumer brands turning to overseas markets for funding.

Chagee is planning to issue up to 64.7 million shares and list them on either the Nasdaq or the New York Stock Exchange, according to a filing notice published by the China Securities Regulatory Commission (CSRC).

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Chagee Holdings received approval for a U.S. IPO, planning to issue 64.7 million shares on Nasdaq or NYSE, becoming the 89th Chinese company with such approval since March 2023 under new regulations.
Founded in 2017, Chagee rapidly expanded with over 6,000 stores, reporting 2023 sales of $1.5 billion; it targets over $2.8 billion in 2024 revenue, surpassing Starbucks' China revenues.
The company joins Chinese brands like Mixue and Guming seeking overseas funding; details of its U.S. IPO remain private, with Citibank and Morgan Stanley advising.

AI generated, for reference only

Who’s Who

Chagee Holdings: Chagee Holdings, a Chinese milk tea chain, received approval for a U.S. IPO, planning to list 64.7 million shares on Nasdaq or the NYSE. Founded in 2017 by Zhang Junjie, Chagee operates 6,000 stores, including international locations in Malaysia, Singapore, and Thailand, and achieved 2023 sales of 10.8 billion yuan. It has raised over 300 million yuan from investors like Fosun Group and XVC, with Citibank and Morgan Stanley advising on the U.S. listing.

Mixue Group: Mixue Group, the largest bubble tea chain in China, debuted on the Hong Kong Stock Exchange on March 3, raising $444 million in the city's biggest IPO of the year. Its shares increased by more than 43% on the first day of trading.

Guming: Guming is a leading Chinese tea chain that raised $232 million in a Hong Kong IPO in February, and its stock has since gained 12.7%.

Haidilao: Haidilao is China's largest hotpot chain. Zhang Junjie, the founder and chairman of Chagee Holdings, serves as an independent non-executive director there.

Starbucks: The article mentions that Chagee expects its 2024 annual revenue to exceed 20 billion yuan, surpassing Starbucks' revenue from China. This comparison highlights Chagee's growth and competitive position in the market.

Fosun Group: Fosun Group is an investment conglomerate that has backed Chagee Holdings in its funding rounds. The company is known for investing in diverse sectors, including healthcare, insurance, and consumer industries. It plays a role in providing financial and strategic support to emerging businesses like Chagee, helping them expand and explore new markets.

Citibank: The article mentions that Citibank is reportedly advising Chagee Holdings on its U.S. listing process along with Morgan Stanley. However, no additional details or context about Citibank's role or operations are provided within the content.

Morgan Stanley: Morgan Stanley is reportedly advising Chagee Holdings on its U.S. listing process. The company is joining Citibank in providing guidance as Chagee seeks to proceed with its initial public offering in the United States, potentially listing on the Nasdaq or the New York Stock Exchange.

AI generated, for reference only

What Happened When

In 2023：: Chagee opened more than 2,000 new stores, reaching a total of 6,000 locations.

After March 2023：: China introduced a new overseas share sales system following the Didi Global Inc. regulatory crackdown and delisting.

May 2024：: Zhang disclosed Chagee's 2023 total sales of 10.8 billion yuan and an additional 5.8 billion yuan in the first quarter of 2024, expecting annual revenue for 2024 to exceed 20 billion yuan.