According to us time on April 22, the US Securities and Exchange Commission (SEC) released information on lucky coffee's F-1 filing. Form F-1 is also the registration and listing announcement of non-U.S. domestic companies, which means lucky has finally taken the first step to the U.S. stock market. Lucky coffee was launched in June! Is the purpose to knock on Starbucks?
According to the registration announcement, lucky coffee is seeking to list on the US NASDAQ Exchange with LK as the code. Credit Suisse and Morgan Stanley will be their underwriters.
According to the prospectus, Ruixing had a net income of RMB 840 million and a net loss of RMB 1.62 billion in 2018 and a net income of RMB 480 million and a net loss of RMB 550 million as of March 31, 2019.
Lucky announced in the prospectus that as of March 31, 2019, it had 2370 Direct stores. According to frost Sullivan, by the end of 2018, lucky ranked second in the Chinese market in terms of the number of stores and the number of cups of coffee sold.
Four days ago, lucky coffee just announced on April 18 that on the basis of round B financing completed in November 2018, it will obtain a total of 150 million US dollars of new investment, including 125 million US dollars of private fund investment managed by BlackRock and 2.9 billion US dollars of valuation after lucky coffee investment.
The relationship between BlackRock and Starbucks has drawn much attention to this financing. BlackRock holds 81.8 million shares of Starbucks through a number of sub funds, accounting for 6.58%. BlackRock is the largest active investor of Starbucks and the shareholder of the second largest fund management company. The industry believes that financing is the second, and BlackRock's participation is to help lucky get endorsement from mainstream investors in the United States.
This is Ruixing's third financing so far. In 2018, lucky completed round a financing of US $200 million in July, with the participation of Dazheng capital, joyful capital, GIC and Junlian capital, with a post investment valuation of US $1 billion; at the end of the year, it completed round B financing of US $200 million, with a post investment valuation of US $2.2 billion. The leading investors are mainly the major shareholders of round a financing, and increased the entry of state-owned assets such as CICC.
Before lucky aimed at NASDAQ, it was reported that it planned to list in Hong Kong. In January this year, it was reported that lucky coffee is preparing to go public in Hong Kong, and investment banks have begun to prepare for the listing. However, due to the fact that Ruixing has only been in business for more than one year, it does not meet the requirements of operating records for at least three years of listing on the main board, which will be an obstacle to listing. According to the Listing Rules of the Hong Kong stock exchange, companies listed in Hong Kong need to pass one of the 'profit test', 'market value / income / cash flow test' and 'market value / income test'. Any one of them requires companies applying for listing to have business records of no less than three accounting years.