Luckin Coffee plans to raise USD 586.5 million in US IPO

The company says it sold 90 million cups of joe last year.

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Luckin Coffee plans to raise USD 586.5 million in US IPO

China’s caffeine-driven cash burner Luckin Coffee is planning to raise up to USD 586.5 million by offering 30 million American Depositary Shares (ADS), according to its prospectus filed with the US Securities and Exchange Commission on Monday.

“It is currently estimated that the initial public offering price per ADS will be between USD 15 and USD 17,” said the company.

The company said that it has opened 2,300 stores by the end of March and sold 90 million cups of coffee in 2018, citing a report by Frost & Sullivan, making it “China’s second-largest and fastest-growing coffee network, in terms of number of stores and cups of coffee.”

Starbucks now operates more than 3,700 stores in over 158 Chinese cities.

Luckin announced its IPO plan in late April. Just days before that announcement, the company closed its Series B+ round to raise USD 150 million from investors including BlackRock. The investment brought Luckin’s valuation to USD 2.9 billion.

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