Chagee's IPO Frenzy: Can Its Low Valuation Spark a Day-One Surge?
$Chagee Holdings Limited(CHA)$ , one of China's fastest-growing tea beverage chains, is officially going public this week — and its IPO is drawing serious attention from both retail and institutional investors.
Chagee Joins $333 Billion Market Boom with US IPO Filing - The Exchange Asia
IPO Details
Issue Price: US$26-28
Total Fundraising: ~US$410 million
Implied Valuation: ~US$5.1 billion (≈HK$39.6B)
At the IPO price, Chagee’s estimated market cap of US$5.1 billion puts it close to Guming. Compared to Mixue, it makes 50% of the revenue, but only has 25% of the valuation.
Chagee’s revenue (CNY ¥12.41B) is roughly 50% of Mixue’s.
Its net profit (CNY ¥2.52B) is 56% of Mixue’s and 1.68× Guming’s.
By earnings power alone, Chagee appears undervalued. Its profitability outpaces Guming and holds up strongly against Mixue — yet its valuation lags far behind.
Does that spell underpricing? Or is the market rightfully cautious?
Global Reach: A Singapore Story
Chagee isn’t just a domestic brand anymore. It now runs over 4,500 stores worldwide, and boasts 130 million registered members.
In Singapore, its presence is rising fast: Stores at Orchard Road, Raffles City, and other prime locations
Southeast Asia’s tea wars are heating up, and Singapore is at the heart of it.
But Not All Smooth Tea...
Chagee is listing in the US, not Hong Kong — meaning it could face de-listing risk amid US-China tensions. Tariff pressures and rising geopolitical scrutiny may impact long-term sentiment. Southeast Asia’s tea market is saturated, and brand loyalty can shift quickly
Will Chagee pop on day one like early Bubble Tea IPOs $MIXUE BINGCHENG CO LTD.(MXUBY)$?
Or will it follow the path of $NAYUKI(02150)$ , which saw early hype and then a painful correction?
As a Singapore-based consumer/investor, do you feel Chagee has stronger resonance here than Mixue or Heytea?
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$Chagee Holdings Limited(CHA)$ , one of China's fastest-growing tea beverage chains, is officially going public this week — and its IPO is drawing serious attention from both retail and institutional investors.
At the IPO price, Chagee’s estimated market cap of US$5.1 billion puts it close to Guming. Compared to Mixue, it makes 50% of the revenue, but only has 25% of the valuation.
Chagee’s revenue (CNY ¥12.41B) is roughly 50% of Mixue’s.
Its net profit (CNY ¥2.52B) is 56% of Mixue’s and 1.68× Guming’s.
Will Chagee pop on day one like early Bubble Tea IPOs $MIXUE BINGCHENG CO LTD.(MXUBY)$?
Or will it follow the path of $NAYUKI(02150)$ , which saw early hype and then a painful correction?
As a Singapore-based consumer/investor, do you feel Chagee has stronger resonance here than Mixue or Heytea?
leave your comments to win tiger coins~
From an investment angle, the IPO pricing looks attractive. Chagee’s earnings strength stands out — nearly double Guming’s profit, yet it trades at a lower valuation. That suggests potential upside. Still, I understand the caution given US-China tensions and the risk of a future de-listing.
If Chagee delivers on growth and manages sentiment well, it could shape up as a strong consumer growth story. Personally, I’m watching its post-IPO price action — if macro fears weigh it down early, that could be a solid entry opportunity.
@Tiger_SG @TigerStars @Tiger_comments @TigerGPT
Compared to its competitor $MIXUEGROUP(02097)$ Chagee offers a more premium experience with higher quality ingredients and a wide range of healthier choice.
Mixue's focus is on affordability and accessibility. Can Chagee's IPO match the extraordinary success of Mixue's IPO in Hong Kong? Mixue's share price has surged over 80% since its IPO in February this year.
Chagee's business in China is doing very well. It has 6,440 tea houses, 97% of which are in China at the end of 2024. This is up 83% compared to 2023. Net Revenues
不過要說能否首日飆升，還得看幾點：第一，機構認購的熱度，目前來看反應不俗，說明市場對其成長性認可；第二，它本身主打“中高端茶飲”定位清晰，加上盈利能力也不錯，不是純燒錢擴張那種；第三，新茶飲賽道競爭激烈，投資者也越來越挑剔，是否能持續盈利會是關鍵。
如果資金面配合，加上短線情緒推動，我覺得首日出現不錯的漲幅是有機會的，但也別過度神話，理性參與更重要。
Tried Mixue once, not worth the hype. Honestly, Koi taste way better.
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