Chinese chain Luckin Coffee still can't take a break

Popular Chinese startup Luckin Coffee

Popular Chinese startup Luckin Coffee

Luckin's shares fell another 15.4% in the early afternoon in NY on Monday. The amendment also added stricter information disclosure requirements for companies preparing to list.

Shares of Luckin sank as much as 81 per cent last Thursday in NY after it said the investigation found that fabricated sales from the second quarter of a year ago to the fourth were about 2.2 billion yuan (S$446 million).

A source from a financial regulator said that applying a registration-based system to all applications would obviously not be suitable for China.

At least two of the four banks which led Luckin's initial public offering (IPO) in May previous year have begun reviewing their work for the float, according to four sources with knowledge of the scrutiny.

"WeDoctor's executives have concerns over Credit Suisse's role in Luckin-related deals".

Luckin did not respond to a request for comment on CSRC's observations.

Ontario sees one-day decline in growth rate of COVID-19 cases
It says that there are now 451 confirmed cases in healthcare workers, which represents about 10 per cent of all known cases. The province reported 14 new cases today, nearly double the spike from yesterday, bringing their total to 217.

The class B shares will be converted into American depositary shares (ADS).

CICC, Morgan Stanley, Credit Suisse and Haitong declined to comment. Shares soared by more than 50 per cent during initial trading.

Luckin's IPO attracted a number of prominent investors, including asset management giant Blackrock and Singapore sovereign wealth fund GIC. "China's economy is not doing well already and with Luckin's scandal these companies will face much tighter scrutiny for going public", said a banker who specialises in tech firms' fundraisings, including IPOs.

Credit Suisse's exit comes at a hard time for the bank, which was last week hit with a shareholder suit alleging Luckin Coffee and several underwriters made false and misleading statements that caused its stock price to be inflated.

LUCKIN Coffee, China's biggest rival to Starbucks, apologised today after it revealed a top executive may have faked 2.2 billion yuan (RM1.3 billion) worth of sales past year.

Founded in 2017, the Xiamen-based chain has been one of the largest competitors of Starbucks in China and opened more than 4,500 stores by the end of past year.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.