With offerings such as grapefruit cheese jasmine tea, Luckin Coffee goes big
The Chinese challenger to Starbucks is looking to raise up to $586.5m, its filing with the US SEC shows
Bengaluru — Luckin Coffee, the Chinese challenger to Starbucks, is looking to raise up to $586.5m, its filing with the US Securities and Exchange Commission (SEC) on Monday showed. The company said it expects to offer 34.5-million American depositary shares (ADS) priced between $15 and $17 per ADS in an initial public offering, giving it a valuation of between $3.48bn and $3.95bn. Each ADS represents eight Class A shares, the company said Luckin Coffee, which has been expanding at breakneck speed, 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. The brand is banking on an increase in coffee consumption in China which has almost doubled to 8.7-billion cups last year from 4.4-billion in 2013 and is expected to further rise to 15.5-billion cups by 2023, according to a report cited by Luckin in its prospectus. Luckin has also expanded outside coffee, allowing customers to buy f...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.