Luckin Coffee, the Chinese competitor to Starbucks, is working to generate USD 586.5 million. Presently it is filing with the U.S. Securities.

The company is expecting to offer in American depository shares (ADS) of 34.5 million valued within 15 – 17 Dollars/ADS. This is likely to be the initial price value. All of the ADS signifies eight Class A shares.

Luckin Coffee is currently expanding at a great speed. Presently it has 2,370 stores in 28 cities in China. The company is planning to open additional 2,500 stores. This is to override the presence of a large number of Starbucks stores in China.

The brand is hoping on the growing preference of coffee consumption across China. The average coffee consumption has grown from 4.4 billion in 2013 to 8.7 billion cups in 2018. The same is likely to reach the number of 15.5 billion cups by the year 2023. This is due to the growing population and increased spending power by the people.

Luckin is also expanding in other sectors, from catering to customers with various food and beverage options. Presently they are serving other beverages like tea flavored of grapefruit cheese jasmine and cold noodles with pulled chicken in Sichuan sauce. These are available for order through their apps.

However, reports indicate that the company is facing losses and is likely to continue doing so in the future too. The net loss reported to shareholders of USD 475.4 million and the revenue was valued at USD 125.27 million. The company reported losses of USD 85.3 million for the first quarter in the year 2019.

Qian Zhiya formed the popular coffee chain first in June 2017. His earlier work experience was as COO (chief operating officer) of the car rental firm “Car”. Other two senior executives are also a part of the team. Singapore’s sovereign wealth fund is also supporting this venture, GIC Pte Ltd.

Other investors that have contributed to the company are the Chinese investment firms Centurium Capital, U.S. money manager BlackRock and Joy Capital. The company is working to list Nasdaq under the symbol of “LK”.