CHA IPO News - China-based teahouse chain Chagee Holdings files for a $100 million US IPO | Renaissance Capital
Chinese tea drink brand Bawang Tea Princess (Bawang Tea Princess, ticker symbol: $Chagee Holdings Limited(CHA)$ ) has recently filed for an IPO with the US Securities and Exchange Commission (SEC), planning to go public on the Nasdaq.
The IPO is expected to raise approximately $100 million, and the company plans to open its first US store at the Westfield Century City shopping center in Los Angeles.
Listed Chinese Tea Drink Companies Similar to Ba Wang Tea Princess
IPO and Future Outlook
The joint bookrunners for this IPO include $Citigroup(C)$ , $Morgan Stanley(MS)$ , $DBS Group Holdings(D05.SI)$ , and China International Capital Corporation. Bawang Tea Princess plans to use the IPO funds to further expand its store network in China and overseas, develop new products, and invest in technology to support business development.
Zhang Junjie, founder and CEO of Bawang Tea Princess, said that the company's goal is to "serve consumers in 100 countries" and plans to further consolidate its position in the international tea drink market through a globalization strategy. With its successful listing on the $NASDAQ(.IXIC)$ , Bawang Tea Princess is expected to become an important player in the global tea drink market and promote the internationalization of Chinese tea drink culture.
Ba Wang Tea Princess (Chagee Holdings Limited)
Year of Establishment: 2017
Headquarters: Shanghai, China
Listing Location: Planning to go public on the NASDAQ in the United States, with the ticker symbol "CHA."
Business and Business Model
Ba Wang Tea Princess is a tea drink brand that focuses on "original leaf fresh milk tea." The company operates through both direct management and franchise models. As of December 31, 2024, the brand had 6,440 stores worldwide, including 6,284 in China and others in Malaysia, Singapore, and Thailand. The company has been called a "tea tech" enterprise due to its digitalization and automation technologies that enhance operational efficiency.
Industry and Competitive Landscape
The ready-to-drink tea industry is highly competitive, with major competitors including NaiXue's Tea and Cha Bai Dao. These brands have a significant market share in China and are also actively expanding into overseas markets. Ba Wang Tea Princess has attracted a large number of young consumers through its differentiated product positioning and brand culture. Its products, centered on "original leaf tea + fresh milk," emphasize health and quality.
Core Business Drivers
Brand and Culture: Ba Wang Tea Princess has attracted a large number of consumers with its unique "national style" brand image. Its brand stories and cultural connotations have enhanced consumer identification.
Product Innovation: The company continuously launches new products, such as low-caffeine tea and improved "Tea Latte," to meet different market demands.
Digitalization and Automation: By developing its own fully automatic tea drink equipment, Ba Wang Tea Princess has standardized the taste of franchise stores and improved operational efficiency.
Financial and Market Performance
According to the financial data for 2024, Ba Wang Tea Princess had a total revenue of about $1.7 billion and a net profit of $344.5 million. The company plans to raise about $411 million through the IPO, issuing 14.68 million American Depositary Shares (ADSs) at a price range of $26 to $28 per ADS. If calculated at the upper limit of the issue price, the company's valuation would reach about $5.1 billion.
Brokerage Research Reports and Target Price Range
Currently, there are few brokerage research reports on Ba Wang Tea Princess. However, according to its prospectus, several cornerstone investors have expressed interest in purchasing up to $205 million worth of ADSs. This indicates that there is some interest and confidence from the market in its IPO.
Current Market Performance and Risk Alerts
Ba Wang Tea Princess's IPO plan is being carried out in the current complex market environment, facing certain risks. The trade frictions and geopolitical tensions between China and the United States may affect investors' confidence. In addition, the company needs to deal with challenges from domestic and international competitors and adapt to the market characteristics of different countries and regions.
Summary
As one of the leading brands in China's ready-to-drink tea industry, Ba Wang Tea Princess plans to further expand into the international market through its listing on the NASDAQ in the United States. Its unique brand positioning, product innovation capabilities, and digital operation model are its core competencies. Despite facing market and geopolitical risks, its rapidly growing performance and market expansion plans show strong development potential.
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