Chinese boba tea company Chagee exploded 21% on its first day of listing on Nasdaq yesterday, boosting its market value to $6.2 billion (RM27 billion) – making it the largest Chinese consumer IPO since RLX Technology in 2021.
Chagee has successfully sold 14.7 million shares at a maximum price of $28 per unit and managed to raise $411 million, despite being caught in the middle of the still-simmering US-China economic tensions.
With nearly 6,700 global branches and annual sales reaching RM18 billion, Chagee’s success proves that investors still believe in the purchasing power of the Chinese people even as the world is increasingly worried about the tariff war.
While competitors like Mixue and Guming are comfortable playing in Hong Kong, Chagee dared to break into Nasdaq and unexpectedly, won big!
Now, bubble tea is not just a sweet drink but has become a symbol of a new economic power from the East.
