Category: IPO

May 7, 2019 Off

Luckin Coffee plans to raise over $500M in US IPO

By Jill T Frey

Luckin Coffee, the ambitious Chinese upstart that’s going after Starbucks, could raise nearly $600 million from its upcoming IPO. That’s according to a price range released by the Chinese startup.

In a new filing, Luckin said it plans to sell 30 million shares at an initial range of $15-$17. That gives an estimated raise of $450 million to $510 million, but it could be bumped up if underwriters take up the additional allocation of 4.5 million shares. So, as a grand total, the listing could raise $586.5 million if the full offering is bought at the top of the range.

The company will list on the Nasdaq as “LK.”

Luckin filed to go public last month, just weeks after it closed a $150 million Series B+ funding round led by New York private equity firm Blackrock, which interestingly holds a 6.58 percent stake in Starbucks. The deal valued … Read the rest

May 3, 2019 Off

Uber co-founder Travis Kalanick may not be invited to ring opening bell

By Jill T Frey

Despite Uber co-founder Travis Kalanick wanting to be part of the company going public, the company’s board is considering not letting Kalanick be there to ring the opening bell on May 10, Uber’s first day of trading, Axios reports. Kalanick also wants to bring his dad, The New York Times reports.

Additionally, Kalanick’s fellow co-founders Ryan Graves and Garrett Camp may not be allowed on the balcony to ring the bell.

Uber would not be where it is today without Kalanick, but him being there would surely be a reminder of Uber’s rocky past. Still, Benchmark partner Matt Cohler wants Kalanick and his co-founders to be there, according to Axios. Instead of joining Uber CEO Dara Khosrowshahi and other Uber executives on the balcony, Kalanick will only be able to be on the New York Stock Exchange floor with the company’s other board members.

Kalanick resigned from Uber Read the rest

April 29, 2019 Off

What we want to know in the We Company (WeWork) S-1

By Jill T Frey

With news that the We Company (formerly known as WeWork) has officially filed to go public confidentially with the SEC today, there’s a big question on everyone’s mind: Is this the next massive startup win or a house of cards waiting to be toppled by the glare of the public markets?

No company I follow has as much polarized opinion as the We Company. And while the company will have to reveal at least some of its hand in its official S-1, my guess is that the polarization around the company will not be alleviated until well after it goes public, if ever.

The challenge with understanding its business is how much the details of each of its leases, real estate markets and tenants matter to its bottom line. We already know the top line numbers: the company had revenue of $1.8 billion in 2018, and a net loss … Read the rest

April 29, 2019 Off

WeWork files confidentially for IPO

By Jill T Frey

WeWork, the co-working giant now known as The We Company, has submitted confidential documents to the U.S. Securities and Exchange Commission for an initial public offering, the company confirmed in a press release Monday.

According to The New York Times, the business initially filed IPO paperwork in December.

WeWork, valued at $47 billion in January, has raised $8.4 billion in a combination of debt and equity funding since it was founded by Adam Neumann and Miguel McKelvey in 2010. WeWork is among several tech unicorns with hundreds of millions, billions actually, in backing from the SoftBank Vision Fund. Recently, the Japanese telecom giant eyed a majority stake in the company worth $16 billion, but cooled their jets at the last minute.

WeWork doubled its revenue from $886 million in 2017 to roughly $1.8 billion in 2018, with net losses hitting a staggering $1.9 billion. These aren’t attractive metrics for … Read the rest