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Chinese milk tea chain Chagee hits $6.2 billion valuation on Nasdaq debut
Chinese milk tea chain Chagee debuted on Nasdaq with a valuation of $6.2 billion, rising 21% to close at $33.75 per share. It raised $411 million from 14.7 million shares sold at $28 each, marking the largest US IPO for a Chinese consumer brand since 2021. Founded in 2017, Chagee has nearly 6,700 stores worldwide, benefiting from China's lucrative bubble tea market.
Key points
- Chagee debuted on Nasdaq and closed at $33.75, up 21%.
- The company was valued at $6.2 billion post-debut.
- Chagee raised $411 million by selling 14.7 million shares at $28 each.
- This IPO is the largest for a Chinese consumer brand in the US since 2021.
- Founded in 2017, Chagee has expanded to nearly 6,700 stores globally.
- The company’s growth is driven by a franchise model in the bubble tea market.
Why it matters
- Chagee's IPO is part of a trend of Chinese consumer brands seeking international listings.
- The success of Chagee reflects the growing popularity and investment in the bubble tea market.
- Chagee's debut occurs alongside the return of high-profile IPOs from Chinese brands following market stabilization in 2023.
Chagee's successful Nasdaq debut underscores the booming bubble tea market and signals strong investment interest in Chinese consumer brands, marking a notable event in the context of 2023's IPO landscape.