Another week, another cash-burn tech IPO in the US Following from Uber's high profile list, ambitious Chinese startup Luckin Coffee raises up to $ 650.8 million in Nasdaq after it shares its share with $ 17.
Despite the concern of its high losses and little chance of having a close term, Luckin seems to have been greeted positively by investors. The company valued its share at the top of its range of $ 15- $ 17 and it upsized the offering distributed to 33 million, three million more than previously planned. It gives Luckin an initial net increase of $ 571.2 million, although it may rise to $ 650.8 million if underwriters will take the full additional allocation of 4.95 million 'greenshoe & # 39; shares.
The company will be listed on Friday under the ticker & # 39; LK. & # 39;
Luckin filed publicly last month, a few weeks after it closed a round of $ 1
The company is burned with incredible cash value as it tries to quickly build a brand that competes with Starbucks, and the presence established by the US firm over the past 20 years in China. With aggressive promotions and coupons, the company posted a $ 475 million loss in 2018, a whole year only business until today, with $ 125 million in revenue. For the first quarter of 2019, the card has a $ 85 million loss with total sales of $ 71 million.
We recently went deep into the business, which you can read here with a subscription to our Extra Crunch service, It's been a long time & # 39; money is no object & # 39; at startup & # 39; s approach to building a digital rival on Starbucks in China.