Luckin Coffee is going to the United States for IPO! Estimated revenue of $117 million and loss of $232 million in 2018

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Luckin Coffee estimated a loss of $232 million in 2018 on the eve of IPO in the United States.

Luckin Coffee, a start-up coffee shop chain, estimated revenue of $117 million and a loss of about $232 million in 2018, according to foreign media reports quoting unnamed sources.

Luckin Coffee has approached three investment banks to prepare for his 2019 IPO trip to the United States, with a goal of seeking a valuation of about $3 billion, Reuters reported.

According to The information, Starbucks' Chinese competitor Luckin Coffee has one thing in common with other consumer technology companies listed in the United States: they accumulated huge losses before planning to go public.

The coffee start-up is expected to lose about $232 million in 2018 on revenue of $117 million, according to a person familiar with the matter. He also said the loss did not stop Luckin Coffee from seeking a valuation of $3 billion in IPO.

Luckin Coffee has contacted three investment banks, including Credit Suisse, to prepare for his IPO trip to the United States in 2019, Reuters reported.

Goldman Sachs and Morgan Stanley are also advising Luckin Coffee. One of the sources said Luckin Coffee's goal was to seek a valuation of about $3 billion in IPO.

One of the sources said that Luckin Coffee's IPO may be carried out in May or early June this year, or in the second half of this year.

Luckin Coffee, headquartered in Beijing, officially started business in January 2018 and is still losing money. Luckin Coffee chose to list in New York rather than Hong Kong because Hong Kong listings generally require IPO applicants to have a track record of three fiscal years.

Luckin Coffee wants to compare valuations with Seattle-based Starbucks, according to two people familiar with the matter. Starbucks has long dominated China's coffee market, opening more than 3600 stores in China.

Luckin Coffee plans to expand aggressively this year. On January 3, Luckin Coffee held his 2019 strategic communication meeting at the headquarters in Beijing. At the meeting, Luckin Coffee CEO Qian Zhiya said that 2500 new stores will be added in 2019, with a total of more than 4500 stores.

In December, Luckin Coffee raised $200m in his latest fundraising round, led by GIC and China International Capital Corporation, valuing it at $2.2 billion. Luckin Coffee also received a $200m round of financing in July 2018, making it a unicorn valued at $1 billion. Start-ups with a market capitalization of $1 billion or more.

On December 21, 2018, financial job search and training service CareerIn exposed Luckin Coffee's business plan for round B financing, according to Luckin Coffee's cumulative sales income of 375 million yuan, gross profit of-433 million yuan, gross profit of-115.5% and net loss of 857 million yuan in the first nine months of 2018.

On the afternoon of Feb. 1, Bloomberg reported that Luckin Coffee will conduct a $300 million IPO in the United States as soon as the second quarter. On the news, Luckin Coffee Public Relations Director Zhao Yanyan said: "Sorry, I didn't get the news!"

This is also the second time in half a month that Luckin Coffee has heard the news of IPO, but the place of listing has changed from Hong Kong to the United States half a month ago.

Investment banks have begun to prepare information for Luckin Coffee about IPO on the Hong Kong Stock Exchange, according to EqualOcean.

Luckin Coffee was founded in November 2017 and began trial operation in January 2018, with the goal of challenging Starbucks in China, according to public data.

As of December 25, 2018, the company, which has made its debut for less than one year, has completed the layout of 2000 stores ahead of schedule, adding an average of 2000 stores a day, covering 22 cities across the country, consuming 12.54 million customers and selling 89.68 million cups. 100% coverage within 500m in the core areas of cities such as Beijing and Shanghai. Starbucks, by contrast, opened 3400 stores 19 years after it entered the Chinese market.