Luckin Coffee, said to be a challenger to the coffee magnum Starbucks, is also the second biggest brand of coffee in China.
Luckin Coffee IPO was very well welcomed to the stage of IPOs on May 17th, with the share price of LK shares surging by nearly 50% on its first day of trading.
Here is everything you need to know about Starbuck’s challenger and successful Luckin Coffee IPO debut.
Ahead of its IPO debut, Luckin Coffee company raised 550 million dollars ahead of its initial public offer, which included funds from private equity investors such as BlackRock.
Before IPO opening, Luckin Coffee was valued at 2.9 billion dollars, eventually raising 571.2 billion dollars through IPO sale.
Luckin Coffee estimated share price ahead of IPO was set at 17$, which estimated the company’s value at around 4 billion dollars prior to their public offer going live.
Luckin Coffee started at the higher end of the share price estimates set between 15$ and 17$, while it opened the IPO sale at 25$, rising at the very start of the public offer.
That way, the estimated value also jumped to around 6 billion dollars.
In the meanwhile, Luckin Coffee is hoping to become the top and the best-selling coffee brand in China by lowering the market share that Starbucks has in China.
Luckin Coffee (LK) Revenue and Business Operations
Only two years after starting the company, Luckin Coffee already has 2,370 shops with a clear plan to add 2,500 stores across China.
Coffee business in China is soon to hit 8.2 billion dollars with over 11% of annual increases in the next five years, but since the favorite hot or cold beverage in China is still tea, Luckin Coffee is looking to attract tea drinkers with new tea beverages.