Chinese Beverage Brand “Chagee” Received Approval for IPO in the US
The China Securities Regulatory Commission website newly issued a notice regarding Chagee Holdings Limited’s application for an overseas listing. The company, known for its bubble tea brand “Chagee,” plans to issue up to 64,731,929 common shares and list on either the Nasdaq Stock Market or the New York Stock Exchange in the United States. Failure to complete the overseas listing within 12 months of the notice issuance will require the company to update its filing materials if it intends to proceed.
Chagee opened its first store in Kunming, Yunnan, on November 17, 2017. Starting from 2023, Changee experienced a rapid expansion across the country. By the end of 2022, the company had less than a thousand domestic stores. Over the past year, it has added over 2,000 new stores, bringing its global total to over 4,000.
The success of its product “Original Leaf Fresh Milk Tea” has been a key factor in Chagee’s rapid growth. Using tea leaves and milk as primary ingredients simplifies its supply chain operations compared to competitors like HEYTEA and Nayuki, which offer fruit-infused tea beverages. This simplicity allows franchisees to operate stores with a higher cup output limit.
Chagee Holdings Limited follows a strategy centered around its flagship product. Its star product, Boya Jue Xian, boasts an annual sales volume exceeding 100 million cups, as per the company’s official website.
In July 2023, Chagee Holdings Limited secured an investment from the U.S. hedge fund Coatue Management, valuing the company at 3 billion yuan post-investment. Coatue Management has previously invested in other Chinese tea beverage brands, including Guming and HEYTEA.
Following this investment, Chagee Holdings Limited experienced rapid expansion. Currently, the company operates a total of 5,699 stores, with over 70% of them opened in the last two years. The number of new stores opened from 2020 to October 2024 were 122, 213, 613, 2,314, and 2,595, respectively.
