Lu Zhengyao, the chairman of Chinese coffee shop chain Luckin Coffee, has tapped banks, including Goldman Sachs and Morgan Stanley, for at least a $200 million loan, in exchange for awarding them mandates in the startup's planned U.S. IPO, Reuters reported, citing people with knowledge of the matter.
Luckin has already selected Credit Suisse Group AG to lead the offering, which could take place as soon as May and raise the company's value to about $3 billion, the report said. It was earlier reported that Luckin was looking to raise $300 million in the IPO.
Credit Suisse has already agreed to provide a part of the $200 million loan, Lu Zhengyao reportedly told the other banks that are interested in the IPO.
In case Luckin fails to go public, the loan collateral will be replaced by Lu Zhengyao's shares in car and fleet rental service Car Inc., where he is chairman, according to the report. He owns approximately 33% of Car Inc.