Chinese tea brand Bawang Tea Ji has successfully listed on NASDAQ under the ticker "CHA," marking the first Chinese tea brand to go public in the U.S. The IPO was priced at $28 per share, at the upper end of the range, raising $411 million with a valuation of $5.139 billion. The offering was led by Citigroup, Morgan Stanley, CICC, and Deutsche Bank.
Investors showed strong interest, with demand exceeding available American Depositary Shares (ADS). Key investors include CDH Investments, RWC Asset Management, Allianz Global Investors Asia Pacific, and ORIX Asia Asset Management, expressing intent to purchase up to $205 million in ADS at the IPO price.
Founded in 2017, Bawang Tea Ji has grown into China's largest high-end fresh tea brand. As of late 2024, it operates 6,440 stores, including 6,284 in China. The company's net income surged by 843.8% from 2022 to 2023, reaching RMB 46.402 billion, with a further increase in 2024.
The funds raised will be used to expand store networks in China and overseas, develop new products, build an overseas supply chain, and invest in technology to support business operations.
