Chinese tea chain Chagee Holdings Limited secured a valuation of $7.5 billion after its shares gained 46% 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.

Chagee has expanded across Southeast Asia, entering Malaysia, Singapore and Thailand, according to its prospectus.

An IPO would follow Chagee’s domestic peer Mixue Group, which went public in Hong Kong in March in the city-state’s biggest IPO this year. Mixue’s offering attracted enormous demand from mom-and-pop investors keen to capitalize on the vogue for drinks like bubble tea, a market that’s forecast to surge to $71 billion in three years.

Chagee’s network comprised 6,440 tea houses as of December 2024, with the number growing approximately 83% year over year, the filing shows. Founder and Chief Executive Officer Junjie Zhang, who started the company in 2017, is set to have 89% of the aggregate voting power after the offering, according to the filing.

Chagee’s IPO is being led by Citigroup Inc., Morgan Stanley, Deutsche Bank AG and China International Capital Corp., the filing shows. The shares are expected to trade on the Nasdaq Global Select Market under the symbol CHA.