Chagee Holdings Limited (CHA), a leading Chinese premium tea drinks brand, saw its stock soaring 20.54% in its Nasdaq debut on Thursday, following a successful initial public offering (IPO) that raised $411 million. The strong performance reflects investor enthusiasm for the fast-growing tea beverage chain, despite ongoing US-China trade tensions.

The Shanghai-based company priced its IPO at $28 per American Depository Share (ADS), at the top end of its marketed range of $26 to $28. Chagee sold approximately 14.7 million ADS, with the offering valuing the company at $5.1 billion. The shares opened at $35, 25% above the IPO price, indicating strong demand from both retail and institutional investors.

Founded in 2017, Chagee has experienced rapid growth, expanding its network to 6,440 tea houses as of December 2024. The company has also ventured into Southeast Asian markets, including Malaysia, Singapore, and Thailand. This expansion strategy and the booming bubble tea market, projected to reach $71 billion in three years, have likely contributed to investor interest.

Chagee's successful listing is particularly noteworthy as it marks the first significant U.S. IPO since President Trump unveiled sweeping tariffs earlier this month. Despite citing geopolitical tensions and tariffs among its risk factors, the company's strong debut suggests that investors remain bullish on high-growth Chinese consumer brands. The IPO's success may pave the way for other Chinese companies considering U.S. listings, even as concerns about potential delistings linger in the background of US-China trade relations.