The New York Stock Exchange (NYSE) is reflected in a puddle in New York, U.S., on Monday, Jan. 4, 2021. (MICHAEL NAGLE / BLOOMBERG)
Chinese mainland e-cigarette maker RLX Technology Inc is looking to raise as much as US$1.17 billion from a US initial public offering.
RLX Technology, backed by Sequoia Capital China, is selling 116.5 million American Depositary Shares at US$8 to US$10 each, according to a US filing. Each ADS represents one ordinary share and will be listed on the New York Stock Exchange.
RLX Technology, backed by Sequoia Capital China, is selling 116.5 million American Depositary Shares at US$8 to US$10 each, according to a US filing. Each ADS represents one ordinary share and will be listed on the New York Stock Exchange
The company, known for its RELX-branded devices in the mainland, had earlier considered the Hong Kong Special Administrative Region as a listing venue, but it ultimately opted for the US.
Almost US$15 billion was raised by mainland IPOs on US exchanges in 2020, the second-most on record, according to data compiled by Bloomberg.
RLX, founded in 2018, is the mainland’s largest e-cigarette maker. The mainland banned online sales of e-cigarettes just over a year ago as it joined other countries globally in putting pressure on vaping amid concerns about its potential health effects.
RLX’s revenues increased to 2.2 billion yuan (US$340 million) in the first nine months of 2020 from 1.14 billion yuan a year earlier. It started turning a profit in 2019 and recorded net income of 109 million yuan in the nine months to Sept 2020.
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The company plans to price the IPO on Jan 20 after the US market closes, according to a term sheet. Citigroup Inc and China Renaissance are joint bookrunners for the offering.
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