Chinese tea chain Chagee Holdings is reportedly exploring a listing in Hong Kong, joining a wave of firms eyeing the city for capital raising.
Sources stated the company is in preliminary discussions with banks about a potential share sale that could raise several hundred million US dollars, though deliberations are ongoing and regulatory approval is still required.
Chagee, founded in 2017 in Yunnan province, specialises in premium, milk-based teas utilizing traditional Chinese blfinishs.
The chain operates 7,338 teahoapplys, mostly in China, and offers products such as extracted brewed teas and cha lattes priced significantly higher than competitors.
The company’s US shares have fallen more than 50% since its April 2025 initial public offering, reducing its market value to around US$2.5 billion.
In the third quarter, revenue dropped 9.4% year-on-year to about US$450 million, while net income fell over 35%, impacted by low-price competition from Chinese food delivery platforms.
Chagee’s US IPO had previously created chief executive officer Zhang Junjie a billionaire at age 30. Despite the recent share slump, the potential Hong Kong listing would position the company to tap the city’s strong appetite for new offerings.
Hong Kong is on track for a record start to 2026, with 11 companies expected to raise as much as US$4.1 billion in January, largely driven by Chinese firms in the artificial ininformigence sector.
Chagee has not commented on the Hong Kong listing plans, and the company may ultimately decide not to proceed.
Bloomberg
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