Pedestrians pass the Ceji store in Shanghai, China on March 14th, 2025.
cfoto | Future Publishing | Getty Images
China’s bubble tea chain change filed an initial US offer on Tuesday, calling for trades on Nasdaq using the ticker “Cha.”
The IPO filing comes as the company prepares to open its first US store at Westfield Century City Mall in Los Angeles this spring.
Since its establishment in 2017, the company has grown to over 6,400 tea shops in China, Malaysia, Singapore and Thailand as of December 31st. Regulation submission. Approximately 97% of the locations are in China.
Chagee said it generated a net profit of $344.5 million in 2024 from $1.7 billion in revenue.
According to regulatory submissions, founder and CEO Junjie Zhang has created a chain to modernize tea drinking after being inspired by the success of international coffee companies. China is Starbucks’ second largest market.
According to the company’s website, Cheji hopes to “serve tea lovers in 100 countries, create 300,000 job opportunities around the world, and provide 15 billion cups of fresh tea each year.”
If Chagee is published on Nasdaq, it will take part in the decline in Chinese companies seeking US listings. From January 2023 to January 2024, the number of Chinese companies listed on three US exchanges fell by 5%. US-China Economic and Security Review Committee.
Political scrutiny has shattered Chinese companies’ hopes for a US IPO as relations between the US and Beijing began to frost. Shane is currently planning a London IPO later this year after lawmakers pushed back plans to open it on US exchanges.
US investors may also be cautious about investing in another Chinese drink chain after the example set up by Luckin Coffee.
Luckin was founded in 2017 and grew rapidly. By 2019, it surpassed the number of Starbucks locations in China and released it on the Nasdaq.
But in 2020, Lucky revealed that it had Sales have been expandedthe results will result in listing Nasdaq. The company filed for Chapter 15 bankruptcy. Luckin came out of bankruptcy by 2022.
Since then, they have overtaken Starbucks by selling it as China’s largest coffee retailer.
