16 January, 2020
Davis Polk advised Luckin Coffee Inc. and the selling shareholder on a public follow-on offering of 13.80 million American Depositary Shares, consisting of 9.00 million ADSs sold by Luckin Coffee and 4.80 million ADSs sold by the selling shareholders, for total gross proceeds of approximately $579.6 million. Each ADS represents eight Class A ordinary shares of Luckin Coffee. Luckin Coffee and the selling shareholder have granted the underwriters an option to purchase up to an additional 2.07 million ADSs. Davis Polk also advised Luckin Coffee in its concurrent $400 million in aggregate principal amount of convertible senior notes due 2025. Luckin Coffee has granted the initial purchasers in the concurrent note offering an option to purchase up to an additional $60 million in aggregate principal amount of the notes. The ADSs of Luckin Coffee are listed on the Nasdaq Global Market under the symbol “LK.”
Luckin Coffee is a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI and proprietary technologies, Luckin Coffee pursues its mission to be part of everyone’s everyday life, starting with coffee.
The Davis Polk corporate team included partners Li He and James C. Lin, and counsel – registered foreign lawyer Ran Li. The equity derivatives team included partners John M. Brandow and Yan Zhang, associates Hanbing Zhang and Crystal Chi. Counsel Alon Gurfinkel and associate Omer Harel provided tax advice. Associate Amy L. Larsen provided 1940 Act advice. Members of the Davis Polk team are based in the New York, London, Hong Kong and Beijing offices.
