Chagee Holdings, which owns and franchises teahouses in China and internationally, announced terms for its IPO on Thursday.
The Shanghai, China-based company plans to raise $396 million by offering 14.7 million shares at a price range of $26 to $28. Cornerstone investors have indicated on up to 52% of the deal. At the midpoint of the proposed range, Chagee Holdings would command a fully diluted market value of $5.2 billion.
CHAGEE is a leading premium tea drinks brand, serving freshly-made tea, tea lattes, tea frappes and "teappuccinos." As of December 31, 2024, its CHAGEE brand encompassed a network of 6,440 teahouses, including 6,284 teahouses across China and 156 teahouses overseas. Of its teahouse network, 6,271 are franchised and 169 are company-owned. In 2024, its average number of cups sold per teahouse per month in China was 25,099 (+5% y/y), and average monthly GMV of its teahouses in China was about $70 thousand (+6% y/y).
The Shanghai, China-based company was founded in 2017 and booked $1.7 billion in sales for the 12 months ended December 31, 2024. It plans to list on the Nasdaq under the symbol CHA. Citi, Morgan Stanley, Deutsche Bank, and CICC are the joint bookrunners on the deal. It is expected to price during the week of April 14, 2025.
