Shares of China-based coffee chain Luckin Coffee (LK) rose sharply in its trading debut Friday on Nasdaq, well above the initial public offering price of $17.
During trading Friday, the stock jumped 25.1% to $21.27 -- with the first trade for Luckin Coffee at $25 -- and then it closed up nearly 20% at $20.38.
The Xiamen-based company last week filed for an initial public offering of 33 million shares at an expected range of between $15 and $17 a share.
Established in 2017 and dubbed the "Starbucks of China," Luckin is the second-biggest coffee chain in China after Starbucks. As of March, it had opened 2,370 stores - mostly in office buildings - across 28 cities, and sold 90 million cups of coffee to more than 16.8 million customers.
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The company is aiming to have 4,500 stores throughout the country by the end of this year, surpassing Starbucks, which has 3,600 branches on the streets of 150 Chinese cities two decades after it arrived in China.
The listing is one of the biggest by a mainland Chinese company in the U.S. this year. Analysts and investors are skeptical of the its prospects, however, given the overwhelming dominance of tea as the preferred hot beverage of choice among Chinese consumers.