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China fresh-tea brand Chagee follows Mixue, Guming in IPO rush with New York plan
Chinese tea-drink maker Chagee Holdings has secured approval from the country’s market regulator for an initial public offering (IPO) in the US, just days after competing chain Mixue made its blockbuster debut in Hong Kong.
Chagee is planning to issue up to 64.7 million ordinary shares and list them on either the Nasdaq or the New York Stock Exchange, according to a filing notice published by the China Securities Regulatory Commission (CSRC) on Thursday.
The date of the listing is undecided, Chagee told the Post, adding that due to regulatory requirements, all information related to the listing will be based on its official disclosures.
Chagee’s progress towards a listing comes as mainland China’s consumer companies accelerate their pace of IPOs after the CSRC and bourse operator Hong Kong Exchanges and Clearing both pledged last year to help more such companies raise funds.
Mixue, the country’s largest bubble-tea chain, raised US$444 million on the Hong Kong exchange on March 3, where its shares jumped more than 43 per cent on the first trading day. Retail investors subscribed to 5,258 times more shares than were offered, making it one of Hong Kong’s most popular IPOs ever.
Peer Guming raised US$232 million via a Hong Kong IPO in February, and its shares have since gained 12.7 per cent.
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