Luckin Coffee's IPO price is 17 US dollars and its market capitalization is estimated to be 4.2 billion US dollars.

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Luckin Coffee (luckin coffee) recently filed with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) and re-filed an updated IPO prospectus on the 6th. The IPO price is set at $15 to $17. According to today's (17) news, Luckin Coffee's IPO offering price will be set at $17 per share.

According to reports from NetEase Technology and Wall Street News, according to the IPO Boutique website, Luckin Coffee raised the size of his initial public offering (IPO) from the original estimate of 30 million shares to 33 million shares, and the offering price was set at US $17 per share, the highest in the pricing range, so Luckin Coffee's market capitalization is estimated to reach US $4.2 billion.

Luckin Coffee is a domestic coffee chain brand, gradually threatening the status of leading Starbucks. According to the Nikkei Chinese website, Luckin Coffee, a brand founded by Qian Zhiya, the former CEO of Shenzhou Youche Group, only opened its No.1 store in Beijing in 2018. It took only one year and two months for Luckin Coffee to announce the opening of his 2000th store at the end of that year. As of the end of February this year, according to the search platform for Luckin Coffee on the mainland, Luckin Coffee has so far opened 2048 stores. Luckin Coffee, which entered China in 1999, opened about 3600 stores in 20 years. It is estimated that Starbucks will surpass Starbucks this year.

Taking "high quality" as the selling point, Luckin Coffee invited Japanese baristas, who won the championship of the World barista Competition in 2014, to be fully responsible for a series of work from store design, coffee bean and milk blending. But the price of coffee is nearly 20% cheaper than Starbucks, and it has stolen many Starbucks customers through buy two get one free promotions. By the end of 2018, Luckin Coffee had sold 89.68 million cups of coffee for the whole year, with 12.54 million consumers and a buyback rate of more than 50 per cent in three months.

The rise of Luckin Coffee also shows a change in the consumption pattern of domestic consumers. In the past, compared with cheap local products, overseas brands with "high quality and high price" were very popular at home. However, with the rise of economic development and the improvement of the quality of life, more and more local enterprises strive for transformation, which weakens more and more consumers' worship of foreign brands, believing that as long as the quality meets the requirements, they will choose cheap domestic products.

Although Luckin Coffee appears to be very successful, Wall Street News points out that as the company expands, so does its losses. According to data, Luckin Coffee made a net loss of 1.619 billion yuan last year, while the net loss in the first quarter of this year was about 552 million yuan, more than four times that of the previous quarter. Luckin Coffee's operating expenses in the first quarter of this year exceeded 1 billion yuan, which was 41% of the operating expenses for the whole of last year. At this rate, the company would only have enough cash to last for another 10 months.

But Luckin Coffee does not seem to be worried about losses. Guo Jin, co-founder and senior vice president, told the Financial Times last year that short-term profitability is not what Ruixing is after. What they want is to attract consumers and grab market share with established coffee brands through a variety of marketing methods, such as offering large discounts. But Luckin Coffee does not seem to be worried about losses. Guo Jin, co-founder and senior vice president, told the Financial Times last year that short-term profitability is not what Ruixing is after. What they want is to attract consumers and grab market share with established coffee brands through a variety of marketing methods, such as offering large discounts.

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