- REUTERS/Jason Lee
- Luckin Coffee is set to begin trading Friday on the Nasdaq.
- Shares will trade under the ticker LK.
- The two-year-old startup, which in April received a round of funding from BlackRock, is the latest in a long line of money-losing initial public offerings to hit the US market this year.
- The company competes with Starbucks in China.
- Find out more about Luckin Coffee.
Luckin Coffee, the coffee startup that competes with Starbucks in China, is set to debut Friday on the Nasdaq. It is the latest money-losing company to make to make its trading debut on US markets. Shares will trade under the ticker LK.
Luckin sold 33 million shares at $17 apiece on Thursday evening, raising $571.2 million and giving it a valuation of more than $3.9 billion. Shares were expected to price in a range between $15 and $17.
The company, which was founded just two years ago, has received backing from the asset management giant BlackRock. In the private market, Luckin in April raised $150 million from the firm in a Series B round of funding, according to Crunchbase. In total, Luckin has raised $550 million in funding over four rounds.
Like many other young startups chasing growth, Luckin has yet to turn a profit. The company has opened more than 2,000 stores in China in 18 months. Starbucks has more than 3,600 stores in the country.
The company posted a $475 million loss last year on $125 million in revenue. During the first quarter of this year, it recorded a loss of $85 million on $71 million in sales, according to TechCrunch.
Credit Suisse, Morgan Stanley, China International Capital Corporation Hong Kong Securities Limited (CICC) and Haitong International are leading Luckin’s initial public offering. KeyBanc Capital Markets and Needham are acting as the offering’s comanagers.
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