People who buy on October 18, 2023 in a Chageee business in Shanghai, China.
Costfoto | Nurphoto | Getty pictures
The shares of the Chinese Tea chain Chagee rose by 15%during its public market debut on Thursday, since the company plans a US starts despite the trading voltages between Washington and Beijing.
The share, which is traded with the “Cha” ticker with the Nasdaq, was opened at $ 33.75 per share. The Chagee shares initially increased up to 49%, but lost a large part of these profits in the afternoon trade.
The company rated its first public offer for $ 28 per share on Wednesday at the top of its expected area of 26 to 28 US dollars. Chagee sold 14.7 million shares, collected $ 411 million and estimated the company with around 5 billion US dollars.
Since its foundation in 2017, the company has grown to more than 6,400 tea houses in China, Malaysia, Singapore and Thailand. Last year, Chaagee achieved a net result of $ 344.5 million from sales of 1.7 billion US dollars, as can be seen from the official submissions.
The company is preparing to open its first US location later this spring at Westfield City City Mall in Los Angeles.
Founder and CEO Junjie Zhang created the chain after inspired by the success of international coffee companies. China is Starbucks' Second largest market.
Chaagees initial public offer follows in several weeks of market turbulence after President Donald Trump imposed new tariffs and inflamed a trade war with China. Other stock markets, including Klarna and Stubhub, delayed their plans to open according to the markets.
In recent years, it has also become less popular for Chinese companies to appear on the US exchanges. From January 2023 to January 2024, the number of Chinese companies listed on the three largest US stock exchanges fell, according to the US China Economic and Security China.
Comments are closed.