Abu Dhabi's Mubadala's strategic investment in Luckin Coffee: Transfer of preferred shares between old and new funds, transaction size approximately $1 billion.

On September 10, Wall Street News and All Weather Technology learned that Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, has reached an agreement to make a strategic minority stake investment in Luckin Coffee.

This investment, involving Mubadala and Centurium Capital, the controlling shareholder of Luckin Coffee, is worth approximately US$1 billion and will be completed after customary closing conditions are met.

According to Luckin Coffee's 13D filing with the SEC, the transaction was not a new share issuance for financing. Instead, it was a new fund vehicle with Mubadala as a major LP that acquired a total of 241.095 million Luckin Coffee preferred shares held by two existing funds under Centurium Capital. Centurium Capital's beneficial ownership remains unchanged.

If all of the approximately $1 billion is converted into the aforementioned 241.095 million preferred shares, the implied price is approximately $4.15 per share; based on the conversion of each ADS into 8 ordinary shares, the implied price per ADS is approximately $33.18, which is close to the market price in early September.

Documents show that Camel ZQ, an entity associated with Centurium, sold ADSs at approximately US$34.39 per ADS on September 4, and then made a large-scale sale at approximately US$31.99 per ADS on September 9.

Mohammed Abdal, Head of Asia at Mubadala Investments, stated that Mubadala remains optimistic about long-term investment opportunities in China's consumer sector. Luckin Coffee's digital capabilities cover user operations, product development, and store management, and its scale advantages and product innovation capabilities enable it to respond to changing consumer demands. Mubadala will leverage its long-term partnership with Centurium Capital to support Luckin Coffee's continued growth in China and international markets.

As of June 30, 2026, Luckin Coffee had a total of 36,310 stores worldwide, including 23,734 self-operated stores and 12,576 affiliated stores.

The company's total net revenue in the second quarter was RMB 15.886 billion, a year-on-year increase of 28.5%; the average monthly number of transacting customers reached 112.7 million, and the cumulative number of transacting customers approached 500 million.

Luckin Coffee's previous publicly disclosed round of new equity investment was completed in stages from the end of 2021 to the beginning of 2022, with Centurium Capital and Joy Capital investing a total of approximately US$250 million.

As of February 28, 2026, Centurium Capital held approximately 23.1% of Luckin Coffee's equity and 47.8% of its voting rights, making it the controlling shareholder of the company.

Mubadala currently manages approximately $385 billion in assets. The firm considers China's consumer sector a key component of its Asian investment strategy, and its private equity business primarily focuses on controlling acquisitions and late-stage growth investments.

Besides the capital relationship, whether this investment will drive Luckin Coffee to further expand into overseas markets such as the Middle East and affect its listing process on the main board is also a point of focus after the transaction.

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