Luckin’s IPO price range implies an enterprise value of 1.36 times to 1.56 times its estimated 2020 sales.
A customer collects coffee beverages from a counter at a Luckin Coffee outlet in Beijing.
The price range for Luckin’s initial public offering values the company at 9 times to 10.2 times the company’s estimated 2021 earnings, assuming a so-called greenshoe option is exercised. That’s less than half the valuation of Starbucks, which trades at 22.5 times that year’s forecast profit. The lower valuation could be due to Luckin’s short track record – it only started operations in October 2017. While it had 2,370 stores at the end of March, it’s continuing to spend on growth and hasn’t yet turned profitable. Luckin made a net loss of 572.8 million yuan for the three months ended March, more than quadruple the same period a year earlier, according to a regulatory filing. Net revenues surged 37-fold to 478.5 million yuan.
The company operates a cashier-less business, where customers place orders from a mobile app and pay with electronic wallets. Luckin calls it a “technology-driven new retail model,” as it gathers customer behavior from the app and relies more on smaller pick-up stores instead of the streetfront locations with expansive seating offered by Starbucks.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lyft posts US$1.1 billion loss in Q1 | The Malaysian InsightShares in California-based e-hailing app lost 15% after late March IPO.
Read more »
Beyond meat IPO raises US$241 mln as veggie appetite growsStartups like Beyond Meat are tapping into the surging demand in meat alternatives by offering beef-like versions of the veggie burger and other meat products.
Read more »
Tony Fernandes: AirAsia's Philippine unit plans more than US$200 mln IPOAirAsia hopes to raise more than US$200 million to expand its capacity in the Philippines. airasia
Read more »