What is the IPO listing price?
The IPO listing price is the initial price at which a company’s shares are offered to the public for trading on a stock exchange during its initial public offering (IPO). Even though the average gains for first-day IPOs look exciting, it’s important to note that nearly a third of all IPOs decrease in value on day one of trading. This means the stock trades lower than its offer price before the market closes.Generally, yes. If you are an investor who buys shares in the open market on the day of the IPO, then you can buy and sell at will. However, if you participated in the IPO itself and received shares at the IPO price before the first day of trading, you would be subject to the lock-up period for those shares.
When was Luckin Coffee IPO?
The IPO of Luckin Coffee on May 17, 2019. Luckin’s announcement of a follow-on public offering on January 8, 2020. Luckin went public through a US listing in May 2019 with an app-based business model set to disrupt the coffee industry. Following reported operational successes and several transformational strategic announcements, Luckin’s growth story looked limitless. Luckin was founded by Jenny Qian in June 2017.Thus, while Starbucks and other premium brands may rely on higher prices to convey luxury and quality, Luckin Coffee uses lower prices to attract a large volume of sales and customer acquisition. This strategy has allowed the brand to rapidly expand its market share in a relatively short period.