On Tuesday, Chinese tea chain Chagee disclosed that its revenue almost tripled in 2024 as it applied for a US initial public offering (IPO). The company is part of a trend of firms anticipating a more widespread resurgence in investors’ enthusiasm for new listings. After a long period of slowdown, the US IPO market is set to bounce back in 2025, with high – growth companies getting ready to go public.
Established in 2017, Chagee is a high – end tea brand. As of December 31, it has a network of 6,440 teahouses, among which 6,284 are located in mainland China. The company reported a net revenue of 12.41 billion yuan ($1.71 billion) in 2024, which was up from 4.64 billion yuan in the previous year. Over the same period, its net income surged by 213% to 2.51 billion yuan.
Chinese companies usually look to list on the US stock market to access deeper capital resources, draw a more diverse investor group, and potentially obtain higher valuations. Chagee intends to use the IPO proceeds to expand its domestic and international network, as well as for other corporate needs. Its total gross merchandise value (GMV) in 2024 increased by 173% to reach 29.46 billion yuan.
Earlier in March, China’s securities regulator gave Chagee the green light for a US listing. The company anticipates listing its shares on the Nasdaq under the symbol “CHA.” Citigroup, Morgan Stanley, CICC, and Deutsche Bank are the lead underwriters for this offering.
