Starbucks’ China challenger Luckin Coffee will price IPO at $17 a share

CNBC

Amelia Lucas & Leslie Picker

Luckin Coffee is preparing for its initial public offering for tomorrow and is trying to overtake Starbucks as the coffee chain with the largest presence in China.

Luckin Coffee will price its initial public offering at $17 per share, sources with knowledge of the deal told CNBC on Thursday. The company will also upsize its IPO to 33 million shares, according to a source.

The Chinese coffee company’s expected range was $15 to $17 per share, according to a regulatory filing last week. Luckin plans to list Friday on the Nasdaq under the ticker “LK.”

In its most recent funding round, the Beijing-based chain was valued at $2.9 billion. In 2018, the chain reported net sales of $125.3 million and a net loss of $241.3 million. To cover its losses and pay for its ambitious expansion plans, Luckin has raised $550 million so far, according to Crunchbase.

Starbucks’ stock, which has a market value of $95.8 billion, is up 22% so far this year.

To read the rest of the article, please do not hesitate to click here.