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Starbucks' China challenger Luckin surges in upsized US listing

Investors overlook cash burn to focus on growth outlook

Luckin Coffee has expanded rapidly across urban China, relying on discounts and rapid delivery to grab customers from Starbucks.    © Kyodo

NEW YORK -- Coffee chain Luckin opened its first day of public trading Friday nearly 50% higher on the Nasdaq after an upsized initial public offering raised $561 million, reflecting a bullish outlook on Starbucks' China challenger.

Luckin started trading at $25 after the company priced its shares at $17, the high end of its expected range. The stock peaked at $25.96 before falling back to $20.38 at market close. The Chinese homegrown chain, which is burning through cash to achieve rapid expansion, first filed for a $100 million IPO but raised the target to $510 million. It ended up selling 33 million American depositary shares, three million more than planned.

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