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SHANGHAI - Chagee Holdings Limited, known for its premium tea drinks, has announced the pricing of its initial public offering (IPO) at $28 per American Depositary Share (ADS), with trading expected to start today on the Nasdaq Global Select Market under the ticker symbol CHA. The company aims to raise approximately $411.2 million from the sale of 14,683,991 ADSs, each representing one Class A ordinary share. According to InvestingPro data, the company enters the market with strong fundamentals, including $1.7 billion in revenue and an impressive EBITDA of $404 million in the last twelve months.
In addition to the initial offering, Chagee has granted underwriters a 30-day option to purchase up to an additional 2,202,598 ADSs to cover any over-allotments. The closing of the IPO is anticipated to occur on April 21, 2025, contingent upon customary closing conditions.
The IPO has attracted a consortium of underwriters including Citigroup Global Markets Inc., Morgan Stanley Asia Limited, and Deutsche Bank AG, Hong Kong Branch, with China International Capital Corporation Hong Kong Securities Limited, Tiger Brokers (NZ) Limited, Moomoo Financial Inc., and Valuable Capital Limited also participating.
Founded in 2017, Chagee has reimagined traditional tea culture for modern consumers by emphasizing health and fresh ingredients, combined with innovative technology and branding. This approach has positioned Chagee as a transformative player in the global tea market. The company’s success is reflected in its exceptional financial performance, with InvestingPro data showing a remarkable 167% revenue growth and healthy 48% gross profit margin in the last twelve months. For deeper insights into Chagee’s financial health and growth prospects, including exclusive ProTips and detailed valuation metrics, investors can access comprehensive analysis on InvestingPro.
The offering is made through a prospectus, part of a registration statement filed with the U.S. Securities and Exchange Commission, which became effective on April 16, 2025. Potential investors can obtain copies of the final prospectus from the underwriters. The company demonstrates strong financial discipline with a healthy current ratio of 2.37 and an impressive return on assets of 53%, according to InvestingPro data.
This press release serves as a factual report based on Chagee Holdings Limited’s statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Sales will comply with the Securities Act of 1933, as amended, and are subject to registration and qualification under the securities laws of applicable jurisdictions.
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