Chagee Holdings plans $396 million US IPO amid market volatility

Chagee Holdings, a Shanghai-based tea chain, is aiming to raise up to $411 million in its upcoming IPO on the Nasdaq under the symbol CHA, amidst ongoing market volatility due to U.S.-China trade tensions. The company plans to offer approximately 14.7 million shares priced between $26 and $28 each, which could value the company at about $5.1 billion at the top of the range. Founded in 2017, Chagee has rapidly expanded its network to over 6,440 teahouses, predominantly in China, and is looking to enhance its global presence. Despite potential impacts from U.S. tariffs, Chagee noted that its business model primarily operates within China, with a focus on serving customers in various international markets. The proceeds from the IPO will be used to further expand its teahouse network both domestically and internationally. Market activity for IPOs has been cautious, with companies taking a wait-and-see approach due to economic uncertainties.