Cleary Gottlieb Steen & Hamilton LLP

05/21/2019 | News release | Distributed by Public on 05/21/2019 10:17

Luckin Coffee’s IPO

Cleary Gottlieb is representing Credit Suisse, Morgan Stanley, China International Capital Corp., Haitong International, KeyBanc Capital Markets, and Needham & Company, as underwriters, in the IPO of Luckin Coffee Inc. (Luckin Coffee).

The company announced the pricing of 33 million American depositary shares, each representing eight Class A ordinary shares, at $17 per ADS. The company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 4.95 million additional ADSs. In addition, Louis Dreyfus Company B.V. purchased from the company $50 million Class A ordinary shares at the initial public offering price in a concurrent private placement. The total net proceeds of the offering and the concurrent private placement to Louis Dreyfus Company B.V. are approximately $571.2 million if the underwriters do not exercise their option and approximately $650.8 million if the underwriters exercise their option to purchase additional ADSs in full.

The ADSs began trading on the NASDAQ Global Select Market on May 17, 2019, under the ticker symbol 'LK.' The offering closed on May 21, 2019.

The IPO included a dual-class structure, with a pro rata distribution of high voting stock to substantially all pre-IPO holders. The founders group owned a majority pre-IPO and continues to own a majority after the IPO.

China-based Luckin Coffee was founded in 2017 and is China's second largest and fastest-growing coffee network. It has pioneered a new technology-driven retail model to provide coffee and other products of high quality, high affordability, and high convenience to its customers.

For more information, please see the press release here.