Luckin Coffee, the supersonic Chinese chain, surged more than 20% during its U.S. initial public offering on Friday.
The Beijing-based chain, which went from nonexistent to China’s second-largest coffee chain in just two years, raised more than $570 million in its IPO, which priced at $17 per American depositary share, or ADS.
The company operates nearly 2,400 locations that are typically small, located around high-traffic areas, don’t take cash and are big on digital orders and delivery. The company has nearly 17 million customers.
The $17 per ADS was the high range of Luckin’s expected pricing range, set earlier this month at $15 to $17 per ADS. That suggests heavy demand for the company’s shares.
It also gives Luckin a valuation of about $4 billion.
Luckin, founded in 2017, generated $71.3 million in net revenues during the first three months of the year but lost $82.2 million as the company spent heavily to expand its footprint and lure customers.
The company trades on the Nasdaq Stock Exchange under the ticker symbol LK.