Chagee CEO a billionaire at 30 after US IPO

Chinese tea chain Chagee Holdings chief executive has become a billionaire at 30 after the company's shares rose by 21 per cent on Apr. 17.

According to Reuters, the company's American depositary shares (ASD) entered the Nasdaq stock exchange at US$33.75 apiece (S$44.26) instead of the initial public offering (IPO) price of US$28 (S$36).

Chagee's was valued at US$6.2 billion (S$8.1 billion).

Its chief executive officer Zhang Junjie has a net worth of at least S$3 billion as a result.

CEO retains a majority share and voting power

The IPO raised US$411 million by selling 14.7 million shares at S$28 each, marking the largest U.S. listing for a Chinese consumer company since 2021.

The market's response highlighted continued investor faith in Beijing's pledges to stimulate domestic spending and stabilise capital markets, reported Reuters.

This is despite escalating economic tensions between U.S. and China.

Zhang, who retains nearly 54 per cent of its Class B shares, has 89 per cent of the total voting power in the company.

He founded the brand in 2017 in Yunnan and currently has over 6,000 stores operating globally, according to its website.

The tea chain specialises in premium, milk-based teas using traditional Chinese blends.

Chagee's sales hit US$4 billion (S$5.2 billion) in 2024.

Top photos via WeChat & Chagee Singapore/Facebook