BEIJING (PingWest) — Luckin coffee, embroiled in an accounting scandal, started to commence its delisting procedures from Nasdaq on Monday, June 29, ending the coffee chain’s one-year-run since going public in May, 2019.
U.S. market saw six 15-minute trading halts of Luckin Coffee on June 26 its last trading day. Shares plunged 54% to $1.38 with a total market value of $348 million. The Xiamen-based company raised $651 million in its IPO, and its market value once peaked at a record high of $12 billion in January, 2020.
Over 4,000 Luckin stores across China will operate normally, the company said. However, its expansion will slow down immensely. Three-year-old Luckin only opened 186 new stores since the beginning of 2020, compared to over 2,000 new stores in 2019, and 1,800 the year before, according to report from Beijing Business Today. The outlet also reported that an additional 99 companies related with Luckin Coffee have cancelled their registration with the regulators in the first half of 2020.
The coffee chain stated that strategies are being adjusted in order to close down some stores while opening new ones, due to the coronavirus outbreak and other unexplained factors.