Deals

China Starbucks Rival Luckin Jumps After $561 Million IPO

  • Luckin Coffee upsized listing, selling shares at top of range
  • Chain is spending millions yearly to take on Starbucks
Reinout Schakel, Luckin Coffee CFO, discusses the company’s U.S. IPO and growing in China.Daybreak: Americas." (Source: Bloomberg)
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Luckin Coffee Inc., a challenger to Starbucks Corp. in the race to dominate China’s growing coffee culture, climbed in its trading debut after raising $561 million in an expanded U.S. initial public offering.

The Xiamen-based company, which opened at $25, climbed as much as 53% in New York trading Friday. Luckin sold 33 million American depositary shares Thursday for $17 each, after marketing 30 million shares for $15 to $17. The shares closed up 20% at $20.38, valuing the company at $4.8 billion.