CHAGEE goes to Nasdaq: China’s new-style tea drinks go to the US for the first time

Recently, the Chinese new-style tea brand CHAGEE (stock code: CHA) officially listed on NASDAQ, becoming the first Chinese tea drink company to list in the U.S. The IPO was priced at $28 per share, raising a total of $5.1 billion (approximately 37.2 billion RMB). International investment banks such as Citigroup and Morgan Stanley served as lead underwriters, marking the entry of China’s tea drink industry into the era of global capital.

Founded in 2017, CHAGEE has rapidly expanded its market presence through its unique ‘fresh leaf milk tea’ and franchise model. By the end of 2024, it had established over 6,440 stores globally, with 97% being franchises. In 2024, the company’s revenue surged to 12.4056 billion yuan, a 167.4% increase from the previous year, with a net profit margin of 20.3%. The average monthly GMV per store exceeded 510,000 yuan, demonstrating strong profitability.

According to the prospectus, the average monthly sales per store of CHAGEE in China have nearly tripled from 8,981 cups in 2022 to 25,099 cups in 2024, demonstrating the success of its ‘major product + strong operations’ model. Additionally, the company’s first North American store will open in Los Angeles, California, marking the substantial implementation of its globalization strategy.