Chagee Holdings announced an additional $61.7 million raised from over-allotments in its IPO, closing on April 30, 2025.
Quiver AI Summary
Chagee Holdings Limited, a premium tea drinks brand, announced that underwriters of its U.S. initial public offering have exercised an over-allotment option to purchase an additional 2,202,598 American Depositary Shares at $28.00 each, generating about $61.7 million in gross proceeds before fees. The transaction closed on April 30, 2025, and was part of an IPO filed with the U.S. Securities and Exchange Commission, which was declared effective on April 16, 2025. The offering aims to enhance Chagee's presence in the global tea market, driven by a commitment to innovation and quality since its establishment in 2017.
Potential Positives
- The underwriters exercised their over-allotment option, resulting in additional gross proceeds of approximately US$61.7 million, indicating strong demand for the company's shares.
- The successful closing of the over-allotment option enhances the company's financial position and can be used for expansion and operational growth.
- The press release highlights Chagee's status as a leading premium tea drinks brand, reinforcing its market presence and brand recognition.
- The effective registration statement with the U.S. Securities and Exchange Commission positions Chagee for broader investor access and potential future fundraising opportunities.
Potential Negatives
- The exercise of the over-allotment option may indicate that initial demand for the IPO was higher than expected, raising concerns about the company's ability to maintain such demand in the future.
- The reliance on underwriters for the IPO could suggest a lack of confidence from the market, as the involvement of multiple firms indicates that the offering may not have had enough independent market support.
- Potential legal or regulatory scrutiny could arise from the mention of various jurisdictions and the complexity of the compliance involved in the securities offering, which may impact the company's operations or reputation.
FAQ
What is Chagee Holdings Limited?
Chagee Holdings Limited is a premium tea drinks brand known for serving healthy and delicious freshly-made tea drinks.
What recent financial milestone did Chagee achieve?
Chagee announced the exercise of an over-allotment option, raising approximately $61.7 million from the sale of additional ADSs.
What does each American Depositary Share represent?
Each American Depositary Share (ADS) represents one Class A ordinary share of Chagee Holdings Limited.
Who acted as underwriters in Chagee's IPO?
The underwriters included Citigroup, Morgan Stanley, Deutsche Bank, and several other financial institutions.
Where can I obtain Chagee's final prospectus?
The final prospectus can be obtained by contacting the underwriters listed in the press release directly.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
SHANGHAI, May 01, 2025 (GLOBE NEWSWIRE) -- Chagee Holdings Limited (NASDAQ:CHA) (“Chagee” or the “Company”), a leading premium tea drinks brand serving healthy and delicious freshly-made tea drinks, today announced the Underwriters of its previously announced U.S. initial public offering (the “Offering”) have exercised their over-allotment option to purchase an additional 2,202,598 American Depositary Shares (“ADSs”) at an initial public offering price of US$28.00 per ADS, resulting in additional gross proceeds of approximately US$61.7 million, before underwriting discounts and commissions. Each ADS represents one Class A ordinary share of Chagee. The issuance and sale of the over-allotment option closed on April 30, 2025.
Citigroup Global Markets Inc., Morgan Stanley Asia Limited, and Deutsche Bank AG, Hong Kong Branch acted as the representatives of the underwriters for the transaction, with China International Capital Corporation Hong Kong Securities Limited, Tiger Brokers (NZ) Limited, Moomoo Financial Inc., and Valuable Capital Limited serving as underwriters (collectively, the "Underwriters").
The Company's registration statement on Form F-1 relating to the Offering has been filed with the U.S. Securities and Exchange Commission and was declared effective on April 16, 2025. This Offering has been made only by means of a prospectus forming a part of the effective registration statement. A copy of the final prospectus relating to the Offering may be obtained, when available, by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, United States of America, by telephone at +1-800-831-9146 or by e-mailing [email protected]; Morgan Stanley Asia Limited, c/o Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, United States, by telephone at +1-866-718-1649 or by e-mailing [email protected]; Deutsche Bank AG, Hong Kong Branch at 60/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong, or by telephone at +852-2203-8166 or by e-mailing [email protected]; China International Capital Corporation Hong Kong Securities Limited at 29/F, One International Finance Center, 1 Harbor View Street, Central, Hong Kong, or by telephone at +852-2872-2000 or by e-mailing [email protected]; Tiger Brokers (NZ) Limited at Level 27, 151 Queen Street, Auckland Central, New Zealand, 1010, or by telephone at +64-09-3938128 or by e-mailing [email protected]; Moomoo Financial Inc. at 185 Hudson ST, 5 Harborside, Suite 2603, Jersey City, NJ 07311, USA, or by telephone at +1-888-721-0610 or by e-mailing [email protected]; and Valuable Capital Limited at RM 3601-06 & 3617-19, 36/F, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong, or by telephone at +852-2500-0343 or by e-mailing [email protected].
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
About Chagee Holdings Limited
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks. Founded in 2017, Chagee has transformed traditional tea culture into a modern lifestyle experience, leveraging cutting-edge technology and innovative branding. With its commitment to quality, innovation, and cultural connection, Chagee continues to reshape the global tea industry.
Contact
Investor Relations
Robin Yang, Partner
ICR, LLC
Email:
[email protected]
Phone: +1 (212) 537-5825
