Our Buy, Neutral or Avoid ratings of the Secondaries below are intended as a recommendation for those who buy Secondaries on a regular basis. For example, this is not to be interpreted as a Buy recommendation in the traditional sense of adding to your stock portfolio; this is a short term (usually one day or opening trade) time period. Spot secondaries or block trades due to the very short duration of announcement to trading, may take longer to “work”, and should be judged accordingly. (the key is the pricing for spots and or blocks…even more so than scheduled secondaries.
Company: Luckin Coffee, Inc.
Symbol: LK
Price: Last Trade $35.11
Trade Date: Friday, 1/10
Shares or Cash Raise: 12.0 million ADSs
Underwriter(s): Credit Suisse, Morgan Stanley, CICC, Haitong International
Co-Manager: KeyBanc, Needham & Co.
Description: They are China’s second largest and fastest-growing coffee network, in terms of number of stores and cups of coffee sold as of September 30, 2019, according to the Frost & Sullivan Report.
Rating = BUY
Note: Existing Shareholders selling 4.8mm ADSs in this offering
Note: Concurrent $400m Notes Offering
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