Luckin Coffee ☕️ (LK)


Would be nice to have this as a alternative to Starbucks Coffee. What does everyone else think?

Luckin Coffee Inc said it is expanding into vending machines that sell freshly brewed hot beverages and snacks, seeking even more of the China market after overtaking Starbucks Corp as the country’s biggest coffee chain by number of stores.

Luckin founder and CEO Qian Zhiya said the new strategy allowed it to be asset-light and nimble. “It allows us to get closer to consumers and we are not restricted by the license approvals,” she said at an event to launch the new business.


Nasdaq-listed Luckin is selling 12 million American depository shares (ADSs) including 4.8 million secondary ones from Chinese private equity firm Centurium Capital. Based on Luckin’s close price of $35.11 on Tuesday, the deal could raise about $421 million before any over-allotment option is exercised.

Centurium, an early backer of Luckin, is selling about 20% of its holdings and will remain the largest intuitional shareholder in the company after the deal.

Luckin is also raising another $400 million from a five-year convertible bond, carrying a coupon of between 0.5% and 1% with a conversion premium of between 27.5% and 32.5%, showed one of the term sheets. Both deals will be priced after the U.S. market closes on Thursday.

The company plans to use part of the proceeds to open more stores and for sales and marketing.

Growing at breakneck speed by offering cheap delivery, online ordering and big discounts, Luckin also said it now has just over 4,500 stores across China - achieving a goal it set one year ago and topping Starbucks which has 4,100.

Luckin showcased two vending machines at the event - one featuring a Swiss Schaerer coffee machine that can make a variety of hot and iced drinks, as well as one offering a range of snacks.

The startup, also backed by Singapore sovereign wealth fund GIC, went public last year and has a market value of $8.4 billion. Starbucks has a market value of $104 billion.

Luckin made a net loss attributable to shareholders of about 532 million yuan ($76 million) in the third quarter ended Sept. 30, compared with a 484.9 million yuan loss in the same period a year earlier. It has also said it is looking to expand overseas.

Please vote and add to Freetrade platform :pray:

Never heard of them before, thanks for this post! Would be interesting to know where they’re planning on expanding to.

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What is their USP? To me it feels like the thing the world needs the least is another coffee chain.

Your welcome Cam :grinning: I also never heard of them until today :+1:t2:

Read the article mate, only discovered today but competition always good and China is a vast market

I did, but there is mo USP in there. Nothing new, just old coffee :smiley:

Looks cool, but I’m not touching anything chinese with a bargepole.

Everyone’s entitled to a opinion but most things are Chinese these days. Who made your phone? Which country assembled it? etc I could go on. Good luck with your investments though :+1:t2:

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2 hours into trading and the volume is huge.

Link to institutional holders and mutual funds who hold Luckin Coffee below

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Just taken a small position in this with my other broker, shame it’s not on Freetrade but again as with NIO I could not purchase this in a ISA account ? Only my trading account or SIPP. Anyway interesting video which gives you a bit more insight to the company. One thing I didn’t realise is it’s totally cash free when ordering as its all done on a phone app. See what you think ? Link below -

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Its available on Revolut

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Thanks Jbowen had to buy through H+L :relieved: Can you buy it in a ISA account on Revolut ?

As far as I know they don’t do ISA’s

I guess that’s just China for you

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I read Alibaba has linked with Starbucks for delivery and Tencent has backed Luckin Coffee. Interesting

Ok thanks for the heads up mate :+1:t2:

Just think of the population in China ? Growth potential could be massive over the next few years

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I had a small punt into this last night. Up 12.4% since purchase

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Yes same here, only a handful of shares but will hold long term for about the next 5 - 10 years as in no rush :+1:t2: