Luckin Coffee's Proceeds From Follow-on Offerings Surpass IPO

The largest beverage giant in China ended last week with $865 million in cash from its secondary and convertible bonds offerings.
Anthony RussoJan 20,2020,18:05

Luckin Coffee Inc. (Nasdaq: LK) has announced that the underwriters on its secondary offering have exercised their option to purchase an additional 1.35 million American Depositary Shares.

That brings the proceeds from its follow-on offering to $418.3 million, the largest beverage giant in China said in a statement on Friday after the markets closed. Originally, Luckin said it was offering 9 million ADSs at $42 apiece with an additional 4.8 million ADSs held by an existing shareholder.

The underwriters are Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, China International Capital Corporation Hong Kong Securities Ltd.  and Haitong International Securities Company Ltd., KeyBanc Capital Markets Inc. and Needham & Company, LLC.

In addition, Luckin said last week it expects to raise an additional $446.7 million from its convertible senior notes.

With the markets closed on Monday due to Martin Luther King Day, Luckin’s stock last traded at $50.02 on Friday, well exceeding its secondary offering price.