Chagee Holdings Inc., the Shanghai-based teahouse chain, is evaluating a listing on the Hong Kong Stock Exchange as part of a broader strategy to fuel growth and strengthen its capital base. The move follows recent revenue gains and a push into new domestic and international markets.
- Chagee Holdings Inc. is assessing a Hong Kong Stock Exchange listing.
- Company reported RMB 8.7 billion in revenue for 2024, up 42% year-on-year.
- EBITDA margin reached 18.5% in 2024, up from 15.2% in 2023.
- Plans include opening 300 new stores over the next three years.
- Potential IPO raise estimated between $300 million and $500 million.
- 78% of Chagee’s 1,000+ outlets are operated via franchise model.
Chagee Holdings Inc. is actively considering an initial public offering on the Hong Kong Stock Exchange, according to market sources familiar with the matter. The company, which operates over 1,000 stores across China and Southeast Asia, aims to leverage the public markets to finance its expansion into new urban centers and enhance its digital infrastructure. The potential listing marks a pivotal step in the company's evolution from a regional chain to a publicly traded consumer brand with regional ambitions. The decision comes after Chagee reported a 42% year-on-year increase in revenue for the 2024 fiscal year, reaching RMB 8.7 billion ($1.2 billion). This growth was driven by both store network expansion—adding 230 new outlets in 2024—and a 31% rise in average transaction value, reflecting increased customer spend on premium tea and food offerings. The company’s EBITDA margin improved to 18.5% in 2024, up from 15.2% the prior year, signaling improved operational efficiency. If approved, the Hong Kong IPO could raise between $300 million and $500 million, depending on valuation and market conditions. The proceeds would primarily be allocated to opening 300 new stores over the next three years, expanding the company’s R&D capabilities for new product development, and investing in its e-commerce and mobile app platforms. The company’s current franchise model accounts for 78% of its outlets, with the remaining 22% operated directly by the parent company. Market participants are watching the move closely, as a successful listing could set a precedent for other domestic F&B brands seeking public funding. The outcome may also influence investor sentiment toward China’s consumer sector, particularly in the fast-casual dining and specialty beverages niche. Meanwhile, Chagee’s existing shareholders, including private equity firm CMG Capital and founder-led investment vehicles, stand to benefit from a potential liquidity event.