Xinjiang patisserie chain Chanson plans to raise US$22 million on Nasdaq to finance its expansion in the United States
- Urumqi-based patisserie chain Chanson International, which has been operating a restaurant in New York since 2017, plans to open another in the city in the summer
- Group claims China’s labour contract law subjects it to stringent requirements on labour contracts and statutory employee benefits
The patisserie chain operator Chanson International has filed for an initial public offering (IPO) on the Nasdaq market, aiming to raise up to US$22 million to expand its US operations. It has been operating the Patisserie Chanson along New York’s 23rd Street since 2017, and plans to open another in the city’s Greenwich neighbourhood in the summer. It also operates 29 outlets throughout Xinjiang under the George Chanson brand.
Chanson International is marketing its share at a maximum offer price of US$6 per share. Based on the midpoint price of US$5, the firm expects to raise US$12.9 million in net proceeds. Univest Securities is the sole underwriter of the deal.
A US listing will help Chanson build its brand in the US, where it plans to open another 10 new stores over the next five years. By opening its books to investor scrutiny, other private firms from Xinjiang could follow in its footsteps and list overseas.
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“We have been subject to stricter regulatory requirements in terms of entering into labour contracts with our employees and paying various statutory employee benefits,” Chanson International said in its filing on Wednesday, citing China’s labour contract law.
