Starbucks’ fiercest rival in the Chinese market has filed plans to launch an initial public offering (IPO) in the US as the coffee market battle hots up.
Luckin Coffee is reportedly aiming to raise up to $800m as it bids to take on Starbucks in its home market.
The filing was made with the U.S. Securities and Exchange Commission but did not disclose the number of shares it would offer.
Reuters sources said the firm is potentially looking to raise $500m to $800m from the listing, which is scheduled to take place in May. If successful, it would make Luckin the biggest US IPO by a Chinese company this year.
The news agency said another source had told it that the loss-making company is aiming for a valuation of between $4 billion to $5 billion, a significant jump from $2.9 billion following its latest fundraising of $150m announced last week.
Luckin Coffee operates close to 2,500 stores in China but has ambitions to double that this year as it targets Starbucks’ number one spot.
Reuters said that Luckin’s prospectus cites the Chinese market as being worth 8.7 billion cups last year, up from 4.4 billion in 2013.