IPO for Chinese e-cigarette maker RLX Technology (RLX) Opens 86% Higher

Today's IPO for Chinese e-cigarette maker RLX Technology (NYSE: RLX) opens at $22.34 after pricing 116.5 million ADSs at $12 per ADS, above the expected $8-$10 range.

The company is backed by Sequoia Capital China.

The offering was led by Citigroup with assistance from China Renaissance.

RLX is the No.1 branded e-vapor company in China, capturing 48.0% and 62.6% of the market share of closed-system e-vapor products in terms of retail sales value in 2019 and the nine months ended September 30, 2020, respectively, according to the CIC Report. They deeply engage in the key activities in the e-vapor industry, from scientific research, technology and product development, supply chain management, to offline distribution. According to a survey conducted in September 2020 by CIC, RLX ranked 1st in terms of brand awareness, as evidenced by a mindshare of 67.6% among users of e-vapor products in China.

RLX has experienced substantial growth with net revenues increasing from RMB132.6 million for the period from January 2, 2018 (date of inception) to December 31, 2018, or the 2018 period, to RMB1,549.4 million (US$228.2 million) for the year ended December 31, 2019, and from RMB1,138.9 million for the nine months ended September 30, 2019 to RMB2,201.3 million (US$324.2 million) for the nine months ended September 30, 2020. They recorded net loss of RMB0.3 million for the 2018 period and net income of RMB47.7 million (US$7.0 million) for the year ended December 31, 2019. Net income grew from RMB98.0 million for the nine months ended September 30, 2019 to RMB108.6 million (US$16.0 million) for the nine months ended September 30, 2020. They generated non-GAAP adjusted net income of RMB6.5 million and RMB100.5 million (US$14.8 million) for the 2018 period and the year ended December 31, 2019, and RMB141.5 million and RMB381.7 million (US$56.2 million) for the nine months ended September 30, 2019 and 2020, respectively.

You May Also Be Interested In

• Rubrik, Inc. (RBRK) IPO Opens at $38.60, Priced at $32
• Tungray Technologies (TRSG) Closes $5M IPO
• B. Riley Financial (RILY) touching day low of $27, giving back half the day's gains