(Yicai Global) May 23 -- The equity of Luckin Coffee, China's archrival to Starbucks, has fallen 13 percent from its initial public offering price in less than seven days, following the lead of other two recent IPOs in the US.
Luckin Coffee's share price [NASDAQ: LK] fell nearly 15 percent yesterday to USD14.80. The firm priced its shares at USD17 in the IPO.
Startups have been raising less money in this year's IPOs than last year's, partly caused by the rising tensions prompted by trade uncertainties between China and the US.
The stock of US ride-hailing firm Lyft has declined by one-fifth in less than two months since it got listed on the Nasdaq. The equity [NASDAQ: LYFT] closed at USD57.90 yesterday.
The share of Uber Technologies has dropped 8 percent from its IPO price in less than two weeks to close at USD41.30 yesterday.
Luckin Coffee got listed on May 17 and began its journey on the Nasdaq at USD25. The Beijing-based firm issued 33 million American depositary shares, raising USD561 million, and reaching a valuation of more than USD3.9 billion, Bloomberg News reported May 17.
Luckin Coffee has deemed it will surpass Starbucks to become the largest coffee chain in China by opening over 2,500 new stores this year, raising its total to more than 4,500. The US firm had over 3,500 stores in China as of last September after entering the market in 1999.
The Chinese firm has not turned a profit yet, and its net loss attributable to ordinary shareholders and angel shareholders was CNY3.2 billion (USD463.3 million) in 2018. In the first quarter of this year, such loss was CNY573 million (USD83 million). Luckin Coffee's total net loss has risen to CNY3.8 billion since 2017, the prospectus shows.
Editor: Emmi Laine