Chinese tea firm Chagee has raised $411 million by setting the price of its shares at $28 each in its New York initial public offering, according to two sources with direct knowledge of the matter.
The sources could not be identified discussing confidential information. Chagee did not immediately respond to a request for comment.
Chagee launched the deal last week as financial markets grappled with the prospect of a global trade war resulting from U.S. President Donald Trump's tariffs package.
The deal comes as Chinese companies listed on U.S. stock exchanges could face the prospect of being delisted as part of the U.S. response to tensions with China. U.S. Treasury Secretary Scott Bessant last week did not rule out removing Chinese stocks from U.S. exchanges, adding that all options were on the table.
The final price for the 14.7 million American depository shares sold was at the top of the $26 to $28 per share range flagged to investors when the deal was launched. At that price, Chagee will be valued at $5.1 billion, according to its regulatory filings.
Cornerstone investors subscribed for Chagee's shares worth up to $205 million sold in the IPO, filings showed.
Chagee warned of some hit from the tariffs in its prospectus, but said "cross-border trade" was not its principal business. All of its products are manufactured in China.
The tea brand generated 29.5 billion yuan ($4 billion) in sales last year, with over 6,000 teahouses worldwide at the end of 2024. Nearly all of its stores in China are under a franchise scheme.
Chagee has expanded across Southeast Asia, entering Malaysia, Singapore and Thailand, according to its prospectus.
