It definitely seems like how week after week we can see more cash-burning tech IPOs coming from the U.S. It all started when Luckin Coffee, Chinese’s startup company, priced its shares at $17 on the Nasdaq. That was the moment when we were all able to see how this ambitious company has raised its worth up to $651M!
Earlier, this company was concerned about its high losses and it barely was able to see a possibility for near-term profitability. Yet, the investors have definitely made it all easier for Luckin. They have planned to offer a share of $30 million, but they got even $3 more. Luckin got net raise of $571.2 million but that is not an end. It has a huge possibility for its shares to increase to an incredible $650.8 million.
Their decision to go live that was made in the previous month right after they have closed Series B+ funding that was worth $150 million also held stakes in Starbucks, around 6.58%.
Stock Market News – Luckin Coffee IPO
Overall, we are all able to see how Luckin is actually trying to create such an incredible coffee brand as Starbucks is, and we are also able to see how they will definitely succeed in that.
Their aggressive coupons and promotions were made with more than $125 million in revenue. Yet, they really know what they are doing. When taking a look at the statistics from the first part of this year, we can see how Luckin has made $71 million with total sales.
Creating a digital rival to Starbucks in China may be their first goal, but we will probably be able to see a lot of other their decisions coming up to action very soon. Maybe this brand will one day become even stronger and more recognizable than the famous Starbucks. What do you think, how will their future look like?