Luckin Coffee today announced the pricing of its IPO of 33,000,000 American Depositary Shares at US$17.00, giving the Chinese startup a market valuation of roughly US$4 billion.Started less than two years ago, the loss-making Starbucks challenger focuses on deliveries and pickups, all of which are done via an app.There’s no cash or cashiers at its thousands of stores across China.Luckin debuts today on the NASDAQ.
Starbucks’ China challenger Luckin raises $561 million in U.S. IPO: sources – ReutersWhat happened: Chinese coffee chain Luckin Coffee raised $561 million in its US initial public offering (IPO) on Nasdaq, pricing its share at $17 apiece at the top end of an indicative range of $15 to $17 per share, Reuters reported citing people familiar with the matter.The source added that the company sold 33 million American depositary shares in the IPO, more than the 30 million it originally planned.The pricing values the coffee chain at about $4.2 billion.A spokeswoman of the company declined to comment when contacted by TechNode on Friday.Why it’s important: Luckin Coffee, which has built a customer base with smaller locations and more affordable prices, has made lots of headlines since it filing its IPO application last month.
Another week, another cash-burning tech IPO in the U.S.Following on from Uber’s high-profile listing, ambitious Chinese startup Luckin Coffee has raised up to $650.8 million on the Nasdaq after it priced its shares at $17.Despite concern at its high losses and little chance of near-term profitability, Luckin seems to have been greeted positively by investors.The company priced its shares at the top of its $15-$17 range and it upsized the share offering to 33 million, that’s three million more than previously planned.That gives Luckin an initial net raise of $571.2 million, although that could increase to $650.8 million if underwriters take up the full additional allocation of 4.95 million ‘greenshoe’ shares that are on offer.The company will list on Friday under the ticker ‘LK.’
Luckin Coffee is the most energizing IPO in recent memory, and not just because it sells caffeine.Most venture-backed startups can take a decade to reach the public markets.Luckin cut that time down to about 18 months.Founder Jenny Qian Zhiya opened a trial coffee shop in Beijing, with a focus on rapid coffee delivery and mobile app ordering.Fast forward to today, and the company’s 2,370 stores conducted nearly 17 million transactions in the most recent quarter ending March 31.Now Luckin — which can barely offer year-over-year comparables — intends to list its American depository shares (ADSs) on Nasdaq in the coming weeks, hoping to raise over $500 million through the IPO.
Luckin Coffee has filed for an initial public offering, and we finally got to see its numbers.Chinese consumers may not like coffee that much.The whole company is predicated on a big opportunity to increase mass-market coffee consumption in China, and the filing is very clear about targeting three pain points to make this happen.It states that freshly brewed coffee consumption growth in China is limited by inconvenience (not ready to drink), high price, and variations in quality, hence the company’s strategy of building a huge network of outlets (more convenient), offering easy ordering by smartphone, and standardizing quality.Bike-sharing (Mobike) was based on this.But it certainly looks a lot cheaper (if you can get enough traffic per store).
Luckin Coffee, the Chinese challenger to Starbucks, is looking to raise up to US$586.5 million, according to its filing with the US Securities and Exchange Commission, Reuters reports.The company, which is looking to list on the Nasdaq, said it expects to offer 34.5 million American depository shares (ADS) priced between US$15 and US$17 per ADS in an initial public offering.This could give the coffee startup a valuation of between US$3.48 billion and US$3.95 billion.Founded in 2017, Luckin Coffee currently operates 2,370 stores in 28 Chinese cities and plans to open 2,500 more this year as it tries to displace Starbucks as China’s largest coffee chain.(And yes, we’re serious about ethics and transparency.
Starbucks’ China rival Luckin seeks to raise up to $586.5 million in IPO – ReutersWhat happened: Chinese coffee chain Luckin is planning to raise up to $586.5 million in its US IPO according to its latest filing with the US Securities and Exchange Commission (SEC) on Monday.The company expects to offer 34.5 million shares priced between $15 and $17 apiece, giving it a valuation of between $3.48 billion and $3.95 billion.It had set a placeholder amount of $100 million in a filing submitted last month.Why it’s important: Luckin Coffee is touted as a Starbucks competitor, but its business model differs from the coffee giant in many aspects, from user acquisition to marketing strategies.Adopting a growth path similar to many of China’s internet startups, Luckin’s strategy is to expand at a blinding pace, powered by a highly subsidized marketing model and a tech-forward purchasing experience.
The following is an adapted translation of this article written by Zhu Xiaopei and published by Sina Tech.How long does it take a startup to go from zero to IPO?The answer to that question keeps being updated.For China’s dating app Momo, it took 3 years and 4 months.Online store Pinduoduo beat that with 2 years and 10 months, and then a rival app, Qutoutiao, topped that with 2 years and 3 months.China’s Luckin Coffee might be the next to break the record.
China Tech Investor is a weekly look at China’s tech companies through the lens of investment.Each week, hosts Elliott Zaagman and James Hull go through their watch list of publicly listed tech companies and also interview experts on issues affecting the macroeconomy and the stock prices of China’s tech companies.Check out our lineup of China tech podcasts.Check us out on iTunes or Spotify!In this episode of the China Tech Investor Podcast powered by TechNode, our hosts welcome back Technode contributor Michael Norris to discuss the IPO of Luckin Coffee.Luckin is hardly free of controversy.
On April 22, 2019, Luckin Coffee, the darling of new retail boosters, filed their IPO prospectus with the US SEC.Bottom line: The company’s gone from zero to hero in a year and a half and is cruising for a big IPO.October 2017: Luckin Coffee is founded in Beijing by former Car Inc COO Qian Zhiya and former CMO Yang Fei.Joy, Legend and Centurium all have connections to Car Inc.August 2 2018: Starbucks announces partnership with Alibaba to deliver coffee.April 3 2019: Luckin Coffee registered RMB 45 million worth of movable assets as collateral to Zhongguancun Technology Lease Co., Ltd.
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.This week Kate Clark and Alex Wilhelm dug into the latest, namely big news on the fund front from folks you know, two China-based companies going public on domestic exchanges, and what’s next in the long-running sagas of getting Uber and Slack public.First up Kate talked us through the latest at Kleiner Perkins and Mary Meeker’s new growth fund, called Bond Capital.Alex has some more great context on that here, for interested parties, Kate has more here.Next, we turned to the F-1 filings of Luckin Coffee and DouYu, two China-based companies joining the list of firms from the country that have chosen to go public here in the United States.With Luckin’s filing, we have a fascinating look into the costs of building a hyper-growth company; as you can imagine, Luckin running pretty steep deficits, but adding revenue incredibly quickly on a year-over-year basis.
Chinese coffee chain startup Coffee Box announced on Wednesday it secured RMB 206 million ($30 million) in a fresh round of funding, yet another home-grown challenger to Starbucks looking to gain share in the country’s coffee market.According to a company announcement sent to TechNode, investors include its two co-founders Wang Jiang and Zhang Xiaogao, as well as Chinese venture capital funds Gaorong and Qiming Venture Partners.The follow-on investment comes one year after its RMB 158 million Series B+, which was launched by the same two funds.Founded in 2014, Shanghai-based Coffee Box started its business by offering on-demand delivery service from coffee chain brands including Starbucks and Costa.The company shifted focus to develop its own brand a year later, building shops near office buildings that allow users nearby to book orders via WeChat and receive their drinks within 30 minutes.As of end-2018, the coffee startup boasted 400 shops, referred to as “stations” internally, across the country.
Chinese coffee chain upstart Luckin Coffee on Monday filed an initial public offering (IPO) with the US Securities and Exchange Commission in an effort to fund its escalating battle with rival Starbucks.The Xiamen-based coffee chain, which will list on Nasdaq using the symbol, “LK,” set a placeholder amount of $100 million in the filing.Bloomberg News reported in February the company is targeting around $300 million.The company declined to offer further details when contacted by TechNode citing the quiet period.The IPO filing comes less a week after the company’s $150 million Series B+ that raised its valuation to $2.9 billion.BlackRock, which is also a major investor in Starbucks, led the round with its $125 million investment.
China’s Luckin Coffee has registered plans with the SEC to go public on the Nasdaq, setting a placeholder amount of $100 million, shows its filing.The development comes less than a week after the 18-month-old company announced $150 million in Series B “plus” funding led by the private equity firm Blackrock, which pumped $125 million into the company in a deal that values Luckin at $2.9 billion.As TechCrunch reported last Wednesday, Blackrock also owns a nearly 7 percent stake in Starbucks, the nearly 50-year-old American coffee company that has taken over the world and now finds itself in a knock-down-drag-out battle with the Beijing-based upstart.It’s hard to blame Blackstone — which has itself raised $126 billion(!)over the last 12 months — for hedging its bets.While Starbucks now enjoys a market cap of nearly $94 billion, and its stock has more than doubled over the last five years to a current $76 per share, Luckin has been growing like gangbusters, fueled by the more than $550 million it has raised to date, including a $200 million Series A round that it closed last July, and a $200 million Series B round that it announced in December.