Chinese tea chain Chagee Holdings Ltd is considering a listing in Hong Kong, according to people familiar with the matter, joining a rush of firms being drawn to sell shares in the Asian financial hub.

Chagee is in initial talks with banks about a share sale that may raise several hundred million dollars, possibly this year, the people said, asking not to be identified discussing confidential information. The company already trades in the US, where its initial public offering last year turned Chief Executive Officer Zhang Junjie — aged 30 at the time — into a billionaire.

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Deliberations are ongoing and Chagee may decide to not proceed with a share sale in Hong Kong, the people said. Regulatory approval is also still needed.

Chagee didn’t respond to requests for comment.

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Founded in 2017 in China’s Southwest Yunnan province, Chagee specializes in premium, milk-based teas using traditional Chinese blends. It had a network of 7,338 teahouses as of the end of September, primarily in China.

Chagee’s US shares have fallen more than 50 percent since its April 2025 listing, leaving the company with a market value of about $2.5 billion.

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Revenue declined 9.4 percent from a year earlier in the third quarter to about $450 million, while net income slid by more than 35 percent amid low-price competition from Chinese food delivery platforms, Chagee’s quarterly report shows.

After a strong 2025, Hong Kong is on course for its best January on record for new listings, with 11 companies already poised to raise as much as $4.1 billion. Unlike Chagee, much of the lineup consists of Chinese firms tied to artificial intelligence. KPMG expects Hong Kong listings to raise up to $45 billion in 2026.