(Yicai Global) April 23 -- Chinese coffee startup Luckin Coffee reportedly aims to boost its valuation to USD5 billion through an initial public offering in the US, becoming the largest Chinese IPO in the States this year.
Luckin Coffee is expected to go public next month and raise from USD500 million to USD800 million, Ifeng news website reported, citing people familiar with the matter. The Beijing-based firm filed its prospectus with the US Securities and Exchange Commission yesterday, without disclosing the planned size of financing nor the number of shares to be issued, the report added.
The Chinese company topped its B round of financing last week to lift its valuation to USD2.9 billion. The unicorn plans to open more than 2,500 new stores this year, raising its total to over 4,500, whereas Seattle-headquartered Starbucks had 3,500 outlets in China as of last September. Luckin Coffee has pledged its coffee machines as collateral for loans as the unprofitable company needs more funds to burn in its mission to become the biggest coffee chain in China.
Alibaba Group Holding has carried out the biggest Chinese IPO in the US so far, raising USD25 billion in 2014.
Editor: Emmi Laine