Chagee Holdings Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

Chagee Holdings , a premium tea drinks brand, has announced the pricing of its Initial Public Offering (IPO) on the Nasdaq Global Select Market. The company is offering 14,683,991 American Depositary Shares (ADSs) at $28.00 per ADS, with expected gross proceeds of approximately $411.2 million.

Trading will commence on April 17, 2025, under the symbol 'CHA', with the offering expected to close on April 21, 2025. The underwriters have a 30-day option to purchase up to 2,202,598 additional ADSs. The IPO is led by Citigroup, Morgan Stanley, and Deutsche Bank as representatives, with additional underwriters including CICC, Tiger Brokers, Moomoo Financial, and Valuable Capital.

Positive

• Substantial capital raise of $411.2 million through IPO
• Listing on prestigious Nasdaq Global Select Market
• Strong underwriter syndicate including major global investment banks
• Additional funding potential through over-allotment option

Negative

• Potential shareholder dilution from new share issuance
• Market volatility risks associated with IPO timing

Insights

Financial Analyst

Chagee's $411.2M IPO at $28/ADS represents significant market entry for premium tea brand with strong institutional backing from top-tier underwriters.

Chagee Holdings has successfully priced its initial public offering at $28.00 per ADS, positioning to raise approximately $411.2 million in gross proceeds before underwriting discounts and commissions. The offering of 14,683,991 ADSs represents a substantial capital infusion for this premium tea drinks brand, with an additional over-allotment option of 2,202,598 ADSs potentially increasing proceeds by approximately $61.7 million.

The company has secured an impressive lineup of underwriters, with Citigroup, Morgan Stanley, and Deutsche Bank acting as lead representatives. This tier-one banking support typically signals strong institutional confidence in the offering's prospects and underlying business fundamentals.

Chagee's selection of the Nasdaq Global Select Market for its listing is strategically significant, as this highest tier of Nasdaq imposes more stringent listing requirements than other market segments, indicating the company meets higher financial and liquidity standards.

This IPO introduces a distinctive investment opportunity in the premium beverage sector, which has been experiencing growth as consumers increasingly gravitate toward healthier, premium alternatives to traditional soft drinks and coffee chains. The substantial capital raise positions Chagee to potentially accelerate market expansion, though specific allocation of proceeds isn't detailed in the announcement.

Investors should note that, as with most IPOs, post-listing price volatility is common during initial trading periods. Additionally, as a Chinese company listing in the US markets, Chagee operates within a regulatory environment that carries additional considerations for investors.

Consumer Markets Strategist

Chagee's successful $411M IPO validates growing premium tea market segment and positions company for significant expansion in health-conscious beverage category.

Chagee's entry into public markets represents a significant development in the evolving premium beverage landscape. The substantial $411.2 million capital raise potentially gives the company considerable resources to expand within the growing premium tea segment that has been gaining market share as consumers seek healthier, premium alternatives to coffee chains and sugary beverages.

The company's positioning as a "leading premium tea drinks brand serving healthy and delicious freshly-made tea drinks" aligns perfectly with current consumer trends toward premiumization and health-consciousness in the beverage category. This premium positioning enables higher margins compared to conventional beverage retailers, likely contributing to the strong investor interest reflected in the IPO pricing.

The premium tea market has demonstrated particular growth in China as rising middle-class disposable income drives premiumization across consumer categories. While tea traditionally featured lower price points than coffee, brands like Chagee have proven consumers' willingness to pay premium prices for high-quality, experiential tea products with health-focused messaging.

This IPO may signal increased competitive pressure for established players like Starbucks (through its Teavana brand) and regional tea chains. The substantial funding could accelerate Chagee's physical retail expansion, product innovation capabilities, and marketing reach in both domestic Chinese and potential international markets.

For investors seeking exposure to changing consumer preferences in beverages, Chagee provides access to a growth segment that bridges traditional tea culture with modern premium retail concepts and health-focused positioning.

SHANGHAI, April 17, 2025 (GLOBE NEWSWIRE) -- Chagee Holdings Limited (“Chagee” or the “Company”), a leading premium tea drinks brand serving healthy and delicious freshly-made tea drinks, today announced the pricing of its initial public offering (the “Offering”) of 14,683,991 American Depositary Shares (“ADSs”), at an initial public offering price of US$28.00 per ADS, before underwriting discounts and commissions. Each ADS represents one Class A ordinary share of Chagee. The gross proceeds from the Offering, before deducting underwriting discounts and commissions and other offering expenses payable by Chagee, are expected to be approximately US$411.2 million. In addition, Chagee has granted the underwriters a 30-day option to purchase up to an additional 2,202,598 ADSs at the initial public offering price, less underwriting discounts and commissions, to cover over-allotments.

The ADSs are expected to begin trading on the Nasdaq Global Select Market on April 17, 2025, under the symbol “CHA”. The closing of the Offering is expected to occur on April 21, 2025, subject to the satisfaction of customary closing conditions.

Citigroup Global Markets Inc., Morgan Stanley Asia Limited, and Deutsche Bank AG, Hong Kong Branch are acting as the representatives of the underwriters for the transaction, with China International Capital Corporation Hong Kong Securities Limited, Tiger Brokers (NZ) Limited, Moomoo Financial Inc., and Valuable Capital Limited serving as underwriters (collectively, the "Underwriters").

The Company's registration statement on Form F-1 relating to the Offering has been filed with the U.S. Securities and Exchange Commission and was declared effective on April 16, 2025. This Offering is being made only by means of a prospectus forming a part of the effective registration statement. A copy of the final prospectus relating to the Offering may be obtained, when available, by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, United States of America, by telephone at +1-800-831-9146 or by e-mailing prospectus@citi.com; Morgan Stanley Asia Limited, c/o Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, United States, by telephone at +1-866-718-1649 or by e-mailing prospectus@morganstanley.com; Deutsche Bank AG, Hong Kong Branch at 60/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong, or by telephone at +852-2203-8166 or by e-mailing asia.ecm.internal@list.db.com; China International Capital Corporation Hong Kong Securities Limited at 29/F, One International Finance Center, 1 Harbor View Street, Central, Hong Kong, or by telephone at +852-2872-2000 or by e-mailing ib_projecth2024@cicc.com.cn; Tiger Brokers (NZ) Limited at Level 27, 151 Queen Street, Auckland Central, New Zealand, 1010, or by telephone at +64-09-3938128 or by e-mailing vincent.c@tigerfintech.com; Moomoo Financial Inc. at 185 Hudson ST, 5 Harborside, Suite 2603, Jersey City, NJ 07311, USA, or by telephone at +1-888-721-0610 or by e-mailing IPO@us.moomoo.com; and Valuable Capital Limited at RM 3601-06 & 3617-19, 36/F, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong, or by telephone at +852-2500-0343 or by e-mailing leo.xiao@valuable.com.hk.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Chagee Holdings Limited
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks. Founded in 2017, Chagee has transformed traditional tea culture into a modern lifestyle experience, leveraging cutting-edge technology and innovative branding. With its commitment to quality, innovation, and cultural connection, Chagee continues to reshape the global tea industry.

Contact
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Chagee.IR@icrinc.com
Phone: +1 (212) 537-5825

FAQ

What is the IPO price for Chagee Holdings (CHA) shares?

Chagee Holdings (CHA) has priced its IPO at $28.00 per ADS, with each ADS representing one Class A ordinary share.

How much money will Chagee Holdings (CHA) raise from its IPO?

Chagee Holdings expects to raise approximately $411.2 million in gross proceeds from the IPO, before deducting underwriting discounts and commissions.

When will Chagee Holdings (CHA) start trading on Nasdaq?

Chagee Holdings (CHA) is scheduled to begin trading on the Nasdaq Global Select Market on April 17, 2025.

How many shares is Chagee Holdings (CHA) offering in its IPO?

Chagee Holdings is offering 14,683,991 ADSs, with an additional over-allotment option of 2,202,598 ADSs available to underwriters.

Who are the lead underwriters for the Chagee Holdings (CHA) IPO?

The lead underwriters are Citigroup Global Markets, Morgan Stanley Asia , and Deutsche Bank AG, Hong Kong Branch.