Bawang Cha Ji Seeks $100 Million IPO on Nasdaq for Global Expansion

Bawang Cha Ji, a prominent tea beverage chain, has filed an application with the U.S. Securities and Exchange Commission (SEC) to raise up to $100 million through an initial public offering (IPO). The company aims to list its shares on the Nasdaq Stock Market under the ticker symbol "CHA." This strategic move comes as Bawang Cha Ji prepares to open its first store in the United States at the Westfield Century City shopping center in Los Angeles this spring.

Since its establishment in 2017, Bawang Cha Ji has expanded rapidly, opening over 6,400 stores across several regions, with approximately 97% of these stores located in China. The company reported revenue of $17 billion and a net profit of $3.445 billion for the year 2024. The IPO filing highlights the company's ambitious growth plans, including the goal of serving tea enthusiasts in 100 countries worldwide, creating 300,000 job opportunities globally, and selling 15 billion cups of freshly brewed tea annually.

The inspiration for Bawang Cha Ji came from the success of international coffee companies, with the founder and CEO, Zhang Junjie, aiming to modernize the tea beverage industry. The company's innovative approach and modern retail concept have positioned it as a strong competitor in the domestic market. The IPO is expected to provide the necessary capital to support Bawang Cha Ji's global expansion, including the opening of new stores, product development, and marketing initiatives.

Bawang Cha Ji confidently submitted its confidential IPO application on March 6, 2024. The company has appointed Citigroup, Morgan Stanley, Deutsche Bank, and China International Capital Corporation as the joint bookrunners for the transaction. While the final terms of the offering, including the share price, have not yet been disclosed, the company is poised to become one of the few Chinese enterprises still pursuing a U.S. listing amidst a declining trend in Chinese companies listing on U.S. exchanges.

If successful, Bawang Cha Ji's listing on the Nasdaq will mark a significant milestone, providing the company with access to a broader investor base and enhancing its global brand recognition. The funds raised from the IPO will be instrumental in supporting the company's growth initiatives, enabling it to further solidify its position in the competitive tea beverage market and explore new opportunities for expansion. With a strong brand, innovative products, and a dedicated team, Bawang Cha Ji is well-positioned to capitalize on the growing demand for tea beverages and achieve sustained growth in the global market.