Luckin Coffee’s (NASDAQ: LK) shares shot up 50% in the Friday morning session in the Chinese company’s market debut at Nasdaq.
The Chinese coffee chain company debuted at $25 per share. A night before the debut, Luckin put the price of its IPO at $17 per share, for an implicit market cap of nearly $4 billion. The company also raised its IPO to 33 million shares, 3 million higher than originally planned. The price of its initial public offering was on the high end of its estimated range of $15 – $17 per share.
Shares of the company closed the trade 20% higher settling at $20.38 per share with a market cap of $5.6 billion.
“We have done what most people do in 15 or 20 years,” the company’s chief financial officer Reinout Schakel said Friday in an interview with CNBC before the session began.