Another week, another cash-burning technology listing in the US. Following Uber's high-ranking listing, ambitious Chinese startup Luckin Coffee has increased up to $ 650.8 million on the Nasdaq after it has priced its shares at $ 17.
Despite the concern for its big losses and little chance of near-term Profitability, Luckin seems to have been positively met by investors. The company priced its shares at the top of its $ 15- $ 17 range, raising its offering to 33 million, three million more than previously planned. It gives Luckin an original net income of $ 571.2 million, although it could increase to $ 650.8 million if the guarantors raise the entire allotment of 4.95 million "Greenshoe" shares offered.
The company will list Friday under the ticker "LK."
Luckin filed to get public last month, just weeks after closing a $ 1
The company has burned itself through incredible amounts of money as it attempts to build a brand that competes with Starbucks and the presence that the US firm has built over the last 20 years in China. Through aggressive campaigns and coupons, the company had a $ 475 million loss in 2018, the only all-year-round business day, with $ 125 million in revenue. For the first quarter of 2019, it shed $ 85 million in total sales of $ 71 million.
We recently went into the business, which you can read here with a subscription to our Extra Crunch service, but we & # 39; I have long covered startup's money is not an item & # 39; approach to building a digital rival to Starbucks in China.