Chinese tea chain Chagee has filed for a U.S. initial public offering to trade on the Nasdaq under the ticker “CHA.” Founded in 2017, Chagee has over 6,400 teahouses in China, Malaysia, Singapore, and Thailand, with plans to open its first U.S. store in Los Angeles this spring. The company aims to serve tea lovers globally and deliver 15 billion cups of tea annually. Chagee reported net income of $344.5 million from revenue of $1.7 billion in 2024.
The company’s founder and CEO created Chagee to revolutionize tea drinking after seeing the success of international coffee chains in China. However, the shrinking number of Chinese companies seeking U.S. listings due to political tensions between the U.S. and Beijing could pose challenges for Chagee’s IPO. U.S. investors may also be cautious following the Luckin Coffee scandal in 2020, where the company was found to have inflated sales and was delisted from the Nasdaq.
Despite the setbacks, Luckin has rebounded and surpassed Starbucks as China’s largest coffee retailer by sales. Chagee’s IPO represents a new opportunity for investors to support the growth of a Chinese tea chain in the U.S. market.
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