Apr 23, 2019 (China Knowledge) - Chinese coffee startup Luckin Coffee has filed for a US IPO on the Nasdaq planning to raise up to USD 300 million.
The proposed IPO comes just a week after the company raised USD 150 million in a funding round led by BlackRock at a valuation of USD 2.9 billion.
Luckin which was founded in 2017, expanding rapidly with the last 2 years, reaching 2,370 stores in 28 Chinese cities by positioning itself as a more affordable option to rivals Starbucks in the country and heavily subsidizing customers.
The company aims to become China’s largest coffee network in China in terms of number of stores by the end of this year and has received backing from Singapore’s sovereign wealth fund GIC as well as from China International Capital Corp (CICC).
Luckin reported total revenue of USD 125 million in 2018, making a net loss of USD 241 million and expects to continue seeing losses in the near future as it continues to spend heavily on discounts and deals to acquire customers.
Credit Suisse, Morgan Stanley, CICC, and Haitong International are underwriters for the IPO.
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