Chinese tea brand Chagee targets $5.1 billion valuation in US IPO amid choppy market conditions
(Reuters) -Chinese tea chain Chagee said on Thursday it was targeting a valuation of up to $5.1 billion in its New York initial public offering, braving choppy market conditions.
Market volatility stemming from uncertainty over U.S. trade policy has tempered IPO market activity as companies adopt a wait-and-see approach before proceeding with their stock market debuts.
Shanghai-based Chagee is seeking up to $411 million by offering nearly 14.7 million American depositary shares priced between $26 and $28 each.
The IPO also comes at a time when the world's two biggest economies are locked in an escalating trade war, prolonging macroeconomic uncertainty.
While Chagee warned of some hit from the tariffs, it said "cross-border trade" was not its principal business. All of its products are manufactured in China.
Chagee, which specializes in raw-leaf fresh milk tea, is the latest in a string of Chinese consumer brands to pursue offshore IPOs in recent months.
Chinese IPOs on U.S. exchanges raised $1.15 billion in 2024, compared with $469.7 million in 2023, according to data compiled by LSEG. That amount was still far below the $12.85 billion raised in 2021.
Cornerstone investors have indicated interest in purchasing Chagee's shares worth up to $205 million sold in the IPO.
RAPID RISE
Founded in 2017 by Junjie Zhang, Chagee opened its first store in Yunnan province and has since rapidly expanded across and beyond China.
The tea brand generated 29.5 billion yuan ($4.03 billion) in sales last year, with over 6,000 teahouses worldwide at the end of 2024. Nearly all of its stores are set in China under a franchise scheme.
Chagee plans on serving customers across 100 countries and selling 15 billion servings annually as it aggressively expands its global reach.
In recent years, Chagee has expanded across Southeast Asia, entering Malaysia, Singapore and Thailand.
Chagee will use IPO proceeds to expand its teahouse network in China and abroad, among other purposes.
Chagee will list on the Nasdaq under the symbol "CHA".
Citigroup, Morgan Stanley, Deutsche Bank and CICC are the lead underwriters for the offering.
($1 = 7.3140 Chinese yuan renminbi)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
CarMax First Quarter 2026 Earnings: EPS Beats Expectations
Revenue: US$8.03b (up 6.2% from 1Q 2025). Net income: US$210.4m (up 38% from 1Q 2025). Profit margin: 2.6% (up from 2.0% in 1Q 2025). The increase in margin was driven by higher revenue. EPS: US$1.38 (up from US$0.97 in 1Q 2025). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 18%. Looking ahead, revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Specialty Retail industry in the US. Performance of the American Specialty Retail industry. The company's shares are up 5.6% from a week ago. You still need to take note of risks, for example - CarMax has 1 warning sign we think you should be aware of. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Insider
an hour ago
- Business Insider
China closes gap with U.S. as African countries, others join yuan payment system
China has added more financial institutions from Africa, the Gulf, and Central Asia to its cross-border yuan payment system, a bold move to strengthen the global role of its currency amid intensifying rivalry with the US. China strengthens its cross-border yuan payment system by adding six financial institutions from Africa, the Gulf, and Central Asia. This expansion seeks to internationalize the yuan and reduce reliance on the US dollar in global transactions. The initiative aligns China strategically amidst shifting geopolitical alliances and financial system dynamics. According to a South China morning post; The six financial entities, including the African Export-Import Bank, First Abu Dhabi Bank, South Africa's Standard Bank, Singapore's United Overseas Bank, Eldik Bank of Kyrgyzstan, and Chongwa (Macau) Financial Asset Exchange, officially joined the Cross-border Interbank Payment System (CIPS) as direct participants at a ceremony held in Shanghai last week. The post clarified that as direct participants, these institutions can independently process cross-border yuan payments, unlike indirect participants who must route their transactions through direct members. This development is part of Beijing's ongoing efforts to internationalize the yuan and reduce dependence on the US dollar-dominated financial system, while hedging against potential US sanctions as geopolitical tensions with Washington continue to influence global markets architecture and redirect alliances. Notably, this move aligns with Moscow and Tehran's own efforts to circumvent Western financial restrictions, as both nations explore relative payment systems and deepen economic ties. CIPS breaks into global payment system CIPS, launched in 2015 as China's alternative to the widely used SWIFT network, has been gradually attracting corporate and government entities globally, to fast track its progress. As of May 2025, the system reportedly had 174 direct participants, including domestic and international branches of Chinese banks, as well as major Western financial institutions such as HSBC, JP Morgan, and Citibank. The latest additions reflect China's growing ties with regions that are also seeking alternative financial channels and minimizing exposure to Western regulatory risks and sanctions. With this expansion, the Asian giant takes another bold step towards cementing itself as a key player in the emerging multipolar financial landscape.
Yahoo
an hour ago
- Yahoo
Declining Stock and Decent Financials: Is The Market Wrong About Dayforce Inc. (NYSE:DAY)?
Dayforce (NYSE:DAY) has had a rough three months with its share price down 6.0%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Dayforce's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dayforce is: 1.0% = US$26m ÷ US$2.6b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.01 in profit. View our latest analysis for Dayforce Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is quite clear that Dayforce's ROE is rather low. Even compared to the average industry ROE of 20%, the company's ROE is quite dismal. Dayforce was still able to see a decent net income growth of 15% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared Dayforce's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is DAY fairly valued? This infographic on the company's intrinsic value has everything you need to know. Dayforce doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above. In total, it does look like Dayforce has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
