(Reuters) -Chinese tea chain Chagee secured a valuation of $6.2 billion after its shares gained 21% in the Nasdaq debut on Thursday.
The company’s American depositary shares opened at $33.75 apiece, compared with the initial public offering price of $28.
Chagee sold 14.7 million ADS at the top of its marketed range of $26 to $28 per share to raise $411 million, in the biggest listing for a Chinese consumer company since vaping firm RLX Technology’s $1.4 billion IPO in January 2021, according to Dealogic data.
The market reaction signals sustained investor appetite for Chinese IPOs on U.S. exchanges at a time when two of the world’s biggest economies are engaged in a full-on trade war.
Founded in 2017 by Junjie Zhang, Chagee had nearly 6,700 teahouses worldwide at the end of March, with most of them located in premium shopping malls across China under a franchise scheme.
The milk-tea maker has also expanded into Malaysia, Singapore and Thailand in recent years.
The company generated 29.5 billion yuan ($4.03 billion) in sales last year.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Shilpi Majumdar)
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