File photo/NBD

Jan. 8 (NBD) -- Chinese startup Luckin Coffee (NASDAQ: LK) on Tuesday filed with the U.S. Securities and Exchange Commission, saying that it intends to offer 12,000,000 American depositary shares (ADS) with each ADS representing eight of the company's Class A ordinary shares.

Concurrently with the offering of the ADSs, the coffee chain intends to issue 400 million U.S. dollars of convertible senior notes which will mature on January 15, 2025.

On the day, stock of Luckin Coffee increased slightly by 1.98 percent to close at 35.11 U.S. dollars, but the share prices dipped in the after-hour trading.

National Business Daily noticed that of the 12,000,000 ADSs to be issued, 7,200,000 will be provided by Luckin Coffee itself, and the remaining 4,800,000 will come from the company's shareholder Centurium Capital. After the offering, Centurium Capital's stake in the coffee chain will be reduced to 12.15 percent from 14.79 percent and voting power to 11.44 percent from 14.06 percent.

The proceeds from the offering of ADSs and convertible notes will be used for store network expansion, unmanned retail initiative, and other general and administrative matters.

NBD found that the coffee chain on Wednesday launched "Luckin Coffee EXPRESS" and "Luckin Pop MINI" for its unmanned retail initiative.

Email: lansuying@nbd.com.cn