Insight Report 5 minutes PremiumLuckin Coffee Leverages Pick-Up Store Format and Delivery Services, IPO Set to Fund Further Expansion Coresight Research May 22, 2019 Executive SummaryLuckin Coffee, China’s answer to Starbucks, raised some $571.2 million through an initial public offering (IPO) of American Depository Receipts for 33 million of its shares on the Nasdaq, pricing its shares at the top end of the pre-listing debut range of $17. The amount raised could hit $650.8 million if the underwriters exercise their option to purchase additional shares. Luckin Coffee provides fast delivery services to attract customers looking for convenience. The company uses a pick-up store format (that also offers delivery) that typically has low rent and fit-out costs to allow the company to expand rapidly at lower cost. Luckin Coffee will use the funds raised through the IPO to open more stores and fund promotions for the coming three to five years. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: Coresight Bites: China Consumer Tracker—Some Positive Trends Despite Overall High Avoidance of Public PlacesWeekly US and UK Store Openings and Closures Tracker 2023, Week 47: US Store Closures Jump by Three-QuartersCoresight Bites: US Store Openings and Closures—2022 Review and 2023 OutlookJanuary 2023 UK Retail Sales: Sales Slow Amid Economic Uncertainty