Mon, 16 May 2022 Today's Paper

China’s Luckin raises US$ 561 mn as it hopes to topple Starbucks

18 May 2019 12:10 am - 0     - {{hitsCtrl.values.hits}}

A A A

A woman walks past a Luckin Coffee store in Beijing

 

NEW YORK (AFP) - Chinese coffee chain Luckin, battling to dethrone Starbucks in the Asian giant, has raised US$561 million ahead of its Wall Street listing, an IPO consulting firm said Thursday.


The Chinese company, which debuted on the Nasdaq yesterday, set its share price at US$17, at the high end of the range it announced in May. It sold 33 million American depository receipts (ADRs) after initially marketing 30 million, said Renaissance Capital, which specializes in initial public offerings. The listing values the firm at more than US$ 3.9 billion, according to Bloomberg.

 

ADRs allow foreign companies to list in America without being subject to strict rules that apply to US-based companies.


Luckin plans to use the funds to expand its network and lure new customers. Since it was founded in 2017, the chain has built 2,370 stores in China as of March 31, focusing on offering customers quick grab-and-go service at its small stores or fast delivery to their homes and offices.


It uses a variety of coupons like free coffees and discounted cups to rope in customers and get them coming back to its stores.


The aggressive strategy mirrors tactics used by other Chinese startups that have dislodged Western brands from one of the world’s top consumer markets.


The expansion and high marketing costs have seen its losses balloon in the 18 months it has been in business, racking up a loss of US$ 241 million last year on US$ 125 million in sales.
Luckin’s caffeine-fuelled expansion has been funded by investors including Centurium Capital, a private equity fund founded by the former China head of Warburg Pincus, and Joy Capital.
Its founder Charles Zhengyao Lu earlier founded publicly-traded CAR Inc, one of China’s largest car rental companies. Luckin plans to open 2,500 stores this year and unseat Starbucks as China’s largest coffee chain. China is Starbucks’ fastest-growing and second biggest market after the United States.

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


The Three Universal Truths in Buddhism

Buddhism is a moral and philosophical system, which expounds a unique path of

After night of terror, activists accuse government of smokescreening

On May 9, 2022, several hours before former Prime Minister Mahinda Rajapaksa

RECOVERY OF STOLEN ASSETS – Part I

The “#gotagohome” campaign that started a few weeks back demanding the Pr

‘GotaGoGama’ rises through ashes after Monday’s nightmare

A half burned down tent standing on plastic pillars, heaps of rubble from the