Shares in China’s Luckin Coffee closed 20% above issue price on its first day of trading on the US market, reported the Financial Times.
The group raised $561 million in an initial public offering, giving the Chinese start-up a pre-trading market valuation of roughly $4 billion, less than two years after the company opened its first outlet in Beijing.
The IPO refuels the rapidly-expanding company as it spends heavily in pursuit of its goal to surpass industry giant Starbucks in China by the number of outlets it offers.