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Chinese tea company Chagee jumped during its beginnings to Wall Street on Thursday, defying concerns about the weakness of investors' demand for new American announcements and the intensification of the trade war between the two biggest economies in the world.
The actions of the Shanghai -based channel, specialized in coffee style drinks such as “Teaspressos” and Oolong “Teapuccinos”, increased up to 49% on its first day of negotiation on the Nasdaq. The shares were slightly withdrew in the early afternoon in New York to exchange 19% more.
The announcement made the 30 -year -old CEO Junjie Zhang, a billionaire, with his 19.9% participation in Chagee worth more than $ 1.1 billion.
Chagee sold 14.7 million shares to $ 28 each, which increases $ 411 million, according to Bloomberg data. The action opened at $ 33.75, giving the company a fully diluted market capitalization of more than $ 6 billion. Thursday's rally arrives a few days after the Trump administration increased price On Chinese products at around 120%, increasing a trade war that economists expect to achieve global economic growth.
The initial public offer of Chagee has been the largest Chinese registration in the United States since the Zeekr electric vehicle group raised $ 411 million last May, according to Renaissance Capital, an IPO research provider. He also marks one of the most successful beginnings in New York this year.
Bankers expected the United States IPO Market to explode for life under a republican administration after a three -year drought period, but several close lists, including Coreweave, earlier this year, the exporter of liquefied natural gas.
Several other major offers have been postponed shortly after the pricing announcements of President Donald Trump's “Liberation Day” on April 2, although wider market turbulence did not stop “a wave” of 24, mainly microcaps, Chinese Listing companies in the United States this year, said Matthew Kennedy, a main renaissance strategist.
Chagee's prospectus lists “commercial disputes” and the evolution of “foreign investment laws” as crucial risk factors.
Goldman Sachs This week has underlined growing concerns that Trump could force Chinese companies to bring American scholarships, writing in a note to customers: “In an extreme scenario, American investors may have to liquidate a value of $ 800 billion in Chinese shares.”
A person close to the Nasdaq told Financial Times that the exchange had not heard of the White House on the issue.
Some market players had asked why Chagee, who hopes to develop abroad, has chosen the United States, given that rival Chinese tea companies that gum and mix have increased since their appointment in Hong Kong in February and March, respectively.
These concerns seemed exaggerated on Thursday when the Chagee stock had led.
Chagee's activities in China were booming, according to the company's IPO prospectus. He experienced 6,440 tea houses, including 97% in China – at the end of last year, up 83% compared to 2023, while net income increased by 167.4% over a year to just under $ 1.7 billion. Net profit has reached $ 344 million.
Us Coffee Chain Starbucks, in comparison, has 7,600 stores across China.
Citigroup, Morgan Stanley, Deutsche Bank and investment bank China International Capital acted as main subscribers.
CDH Investment Management, RWC Asset Management, Allianz Global Investors Asia Pacific and Orix Asia Asset Management indicated their “unrelated” interest in the purchase of 51.7% of the shares that should be put up for sale, said Chagee in his prospectus.
About 9% of Chinese tea in volume was exported to the United States last year while suppliers rushed to beat the expected samples under Trump. Chinese tea dispatched to the United States is expected to face a price more than 100%.
“The serious (American) (American) drinkers will be seriously affected,” said Dan Bolton, editor -in -chief of Stir Coffee and Tea magazine, adding that the drink had historically been one of China's “largest ambassadors” and “paved the way for trade and negotiations”.
