Ba Wang Cha Ji Aims to Raise 4 Billion USD in Nasdaq IPO

Ba Wang Cha Ji, a prominent tea beverage brand, has announced its plans to list on the Nasdaq stock exchange under the ticker symbol CHA. The company aims to raise over 4 billion USD through this initial public offering (IPO), with a proposed share price range of 26 to 28 USD per American Depositary Share (ADS). The IPO is expected to be completed by April 17, 2025. The underwriters for this IPO include Citigroup, Morgan Stanley, China International Capital Corporation, and Deutsche Bank. Several institutional investors, including Hillhouse Capital, RWC, Allianz Global Investors, and ORIX, have already committed to purchasing a significant portion of the shares.

Ba Wang Cha Ji's decision to go public on the Nasdaq is a strategic move to tap into the global capital markets and expand its brand presence internationally. The company has seen substantial growth in recent years, driven by the increasing popularity of tea-based beverages and its innovative product offerings. By listing on the Nasdaq, Ba Wang Cha Ji aims to attract a broader range of investors and enhance its financial flexibility, which will support its future growth initiatives.

The IPO is expected to include both Class A and Class B ordinary shares, providing a diverse investment opportunity for both retail and institutional investors. The company's strong financial performance and market position make it an attractive prospect for investors looking to capitalize on the growing tea beverage market. With a robust underwriting team and significant institutional support, Ba Wang Cha Ji is well-positioned to achieve a successful IPO and continue its trajectory of growth and innovation.

Ba Wang Cha Ji was established in 2017 with a focus on high-end, ready-to-drink tea beverages. The company aims to promote Eastern tea culture globally. As of 2024, Ba Wang Cha Ji operates 6,440 stores worldwide, with over 98% of these stores located in China. The remaining stores are primarily situated in Southeast Asia. The company's gross merchandise value (GMV) for 2024 reached 29.5 billion CNY, marking a 173% year-over-year increase. Net profit for the same period was 2.515 billion CNY, a 213.3% year-over-year increase. The company's flagship product, tea latte, contributes significantly to its revenue.

Ba Wang Cha Ji plans to open 1,000 to 1,500 new stores in 2025, continuing its aggressive expansion strategy. The ready-to-drink tea market in China is experiencing rapid growth, with projections indicating that the market size will reach 426 billion CNY by 2028. The global ready-to-drink tea market is also showing strong growth, with estimates suggesting it will reach 122 billion USD by 2028. This expansion aligns with Ba Wang Cha Ji's goal of becoming a global leader in the tea beverage industry.