CICC Assists Luckin Coffee in Listing on NASDAQ

Luckin Coffee Inc. (“Luckin Coffee”, NASDAQ:LK) completed the listing on the Nasdaq Stock Market on May 17, 2019. The offering includes base offering of 33 million primary ADSs, CPP (concurrent private placement) of 2.94 million primary ADSs, and over-allotment (green shoe) of 4.95 million primary ADSs (assuming full exercise). The final price is US$17.00/ADS. The IPO size is approx. US$561mm (pre-green shoe). Total financing size (post-green shoe, plus CPP) is estimated to be US$695mm. CICC acts as joint bookrunner of this IPO.

The transaction is the largest US IPO of a China concept stock in 2019YTD by financing size. And Luckin Coffee has become the fastest company to go public after inception in the history of the global market. Amid escalated Sino-US trade friction and a volatile market backdrop, the offering was still over-subscribed by investors, leading to extended offering size and high-end pricing.

Luckin Coffee is China’s second largest and fastest-growing coffee network in terms of number of stores and cups of coffee sold. Pioneering a disruptive technology-driven new retail model built upon self-developed mobile apps and high-density nation-wide store network focusing on pick-up model, Luckin provides coffee and other products with high quality, high affordability and high convenience to its customers. As of March 31, 2019, Luckin Coffee has opened 2,370 stores in 28 cities in China, with over 16.8mm of cumulative transacting customers. It aims to become the largest coffee network in China by the end of 2019.

This transaction demonstrated CICC’s ability to provide full-spectrum investment banking services to its clients backed by its comprehensive platform resources, and is another successful cooperation between CICC and its clients, further consolidating the long-term cooperative relationship between CICC and its strategic client.