GGV Capital-backed Niu Technologies, a Chinese maker of lithium-ion electric scooters, aims to raise up to $95 million in its scaled-back initial public offering (IPO) in the US by pricing 8.3 million shares at $11.50 to $12.50 each.
The company, which sells electric scooters in 27 countries, earlier filed to raise $150 million in its US IPO, a placeholder amount to calculate filing fees. Niu would command a fully diluted market value of $900 million if it were to price in the middle.
Founded in 2014, Niu Technologies joins other sellers of smart electric scooters in raising funds to further expand its market beyond home. As of June 30, 2018, the Beijing-based company said it has sold more than 431,500 smart e-scooters in China, Europe, and other countries.
In its US SEC filing, the company said GGV Capital Select, one of its principal shareholders, has indicated an interest in purchasing up to $10 million worth of the shares being offered, or about 10.5 per cent of the total offering.
Niu Technologies raised $20 million in its Series A funding round in June 2015, led by GGV Capital. Jenny Lee of GGV Capital sits on the board of the company.
The company said it intends to use the net proceeds of the offering for upgrade and expansion of its manufacturing facilities, research and development, and distribution network expansion.
“The primary purposes of this offering are to create a public market for our shares for the benefit of all shareholders, retain talented employees by providing them with equity incentives and obtain additional capital,” the company said.
In the first six months of this year, the company reported a $48 million net loss on $84 million in revenue. Its net revenue in 2017 was at $116.2 million, a 116.8-per cent rise from 2016.
According to China Insights Consultancy (CIC), China is the largest market for electric scooters, where sales volume and retail sales value of electric two-wheeled vehicles reached 27 million units and $8 billion in 2017, respectively.
Sales volume and retail sales value of electric two-wheeled vehicles in China are expected to reach 34.9 million units and $13 billion by 2022, respectively, the CIC data showed.
In Southeast Asia, market penetration of electric two-wheeled vehicles is lower than China, indicating a huge market potential for electric two-wheeled vehicles in the region.