AsianFin -- 

Chinese tea chain Chagee's upcoming U.S. initial public offering (IPO) has been fully subscribed with strong investor demand, according to people familiar with the matter.

Sources indicate that investor interest has exceeded the available American depositary shares (ADS) by multiple times, with bids coming from both Chinese funds and global long-only institutional investors. The IPO is expected to price on Wednesday.

The robust demand highlights growing international appetite for China's booming new-style tea beverage market, where Chagee has emerged as a leading premium brand known for its milk tea blends featuring traditional Chinese tea bases.

Bank of America and CICC are leading the offering, which comes as U.S.-listed Chinese stocks show signs of revival after two years of regulatory pressures. Chagee would join fellow Chinese tea chains Nayuki and Heytea in tapping public markets amid fierce competition in China's $20 billion premium tea drink sector.