NEW YORK: Luckin Coffee, the second largest coffee company in China, has brought on Joele Frank for communications support around its IPO.
Partners Ed Trissel and Leigh Parrish and MDs Scott Bisang and Amy Feng are account leads.
In addition, Luckin is also relying on ICR for investor relations support, which is being led by partner Bill Zima and MD Fitzhugh Taylor, according to sources familiar with the matter.
Joele Frank and ICR representatives declined to comment.
Luckin has positioned itself as a disruptor to Starbucks with its rapid growth. The company doesn’t have cashiers, instead relying on mobile apps to deliver its services throughout its pick-up stores, as well as a swath of "big data analytics and AI" to make its operations more efficient and scale up its business, according to its prospectus.
"By disrupting the status quo of the traditional coffee shop model, we have gained significant cost advantages and provided attractive value propositions to our customers," the company said in its F-1.
In its first full year of business in 2018, Luckin recorded a $475 million loss, according to its F-1. Luckin posted $125 million in revenue for 2018. In Q1 2019, Luckin saw an $85 million loss against total sales of $71 million.
With 2,370 stores in 28 cities across China, Luckin has more than 16.8 million of cumulative transacting customers as of March 31, 2019, according to its F-1. It also had a repurchase rate of more than 54% in 2018.
According to a statement, the deal had four bookrunners: Credit Suisse Securities, Morgan Stanley, China International Capital Corporation Hong Kong Securities Limited and Haitong International Securities Company Limited.
KeyBanc Capital Markets and Needham & Company are acting as co-managers, according to a statement.