Luckin Coffee Updates $510 Million U.S. IPO

Luckin Coffee, the Starbucks challenger in China, is seeking to raise up to $510 million in the U.S. initial public offering (IPO).

SEE ALSO: Luckin Coffee Files For U.S. IPO with Total Financing of $100 Million

The company said in a filing on May 6 it plans to sell 30 million American Depositary Shares (ADS) for $15 and $17 each. With the IPO, Luckin is also offering 25 million ordinary shares to Louis Dreyfus, a global merchant firm.

After the listing, Luckin would have a value of as much as $4 billion, according to the filing.

Since its founding, Luckin has been expanding its physical stores rapidly to at least match the coverage area of Starbucks. Until March 31, 2019, the number of Luckin’s total stores has grown to 2,370, covering 28 cities.

Luckin said last year it planed to open 200 to 300 outlets a month, putting it on track to overtake Starbucks, which has more than 3,300 locations in China, by the end of this year.

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