Chinese Tea Chain Chagee Is Betting Wall Street Wants A Piece of the Boba Boom, Filing for US IPO
In recent years, boba has gone from a Taiwanese mainstay to a global phenomenon. And now, investors want to bet on the staying power of the boom. Earlier this month, Chinese bubble tea chain Mixue soared over 43% in its debut on the Hong Kong Stock Exchange. And after seeing the demand, another Chinese tea chain is betting that Wall Street will be just as interested.
- Last week, Chinese milk tea chain Chagee filed for an IPO in the US, which would make it the first “pure play” boba stock on US markets.
- According to its F-1 filing, Chagee generated $1.7B in revenue in 2024, bringing home an impressive $344.5M in net income.
Boba, worldwide: Nearly all of Chagee’s locations — 97% — are in China. But the company has grown to other Southeast Asian markets such as Malaysia, Singapore, and Thailand. Along with its US IPO, it plans to open its first US location later this year. However, while the promise of a boba bet might sound appealing, some investors may be cautious when it comes to Chinese consumer plays — just ask those who bought into Luckin Coffee.
