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 plans to list its shares on the Nasdaq Stock Market under the ticker symbol "CHA." This move comes as the company 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 mainland China, Malaysia, Singapore, and Thailand. Approximately 97% of these stores are located in mainland China. The company reported revenue of $17 billion and a net profit of $3.445 billion for the year 2024. Inspired by the success of international coffee companies, the founder and CEO, Zhang Junjie, aimed to modernize the tea beverage industry. The company's vision is to serve tea enthusiasts in 100 countries globally, create 300,000 job opportunities, and sell 15 billion cups of freshly brewed tea annually.

Bawang Cha Ji confidentially submitted its IPO application on March 6, 2024. The underwriters for this transaction include Citigroup, Morgan Stanley, Deutsche Bank, and China International Capital Corporation. The company's IPO plans align with its strategic goal of global expansion, leveraging the Nasdaq platform to attract international investors and enhance its brand visibility. The funds raised will support the company's retail expansion, product innovation, and supply chain improvements, positioning it for sustained growth in the competitive tea beverage market.

If successful, Bawang Cha Ji will join a select group of Chinese companies seeking to list on U.S. exchanges, despite a recent decline in the number of Chinese companies listed on major U.S. stock exchanges. The company's decision to go public in the U.S. underscores its confidence in its business model and its commitment to delivering value to shareholders. By tapping into the global market, Bawang Cha Ji aims to replicate its success in mainland China and establish itself as a leading player in the international tea beverage industry.