Shares of the Chinese coffee chain surged as much as 53% in their trading debut on the Nasdaq after the company increased its initial public offering.

Shares of Luckin Coffee Inc. surged as much as 53% in their trading debut on the Nasdaq Friday after the Chinese coffee chain increased its initial public offering.

Luckin has become a rival to Starbucks Corp. in China largely through its delivery system, which guarantees shipment within a half-hour in major cities. Starbucks has responded by expanding its delivery business in the country.

Luckin’s...