Chinese vaping firm RLX valued at $35b as shares surge in US stock market debut

Photo : FORMM agency / Unsplash

American depositary shares of RLX Technology Inc jumped 86% in their US stock market debut on Friday, giving the Chinese vaping firm a market capitalization of nearly $35 billion.

RLX’s shares opened at $22.34, well above their initial public offering (IPO) price of $12 per share. Shares were up 58% in early trade on the New York Stock Exchange.

The Beijing-based company offered 116.5 million shares in its IPO, raising $1.4 billion, after having earlier targeted a price range of $8 to $10 per share.

RLX’s debut comes at a time of heightened scrutiny of Chinese listings from the U.S. government. Former U.S. President Donald Trump signed legislation last month to delist Chinese companies that do not adhere to American auditing standards.

Chinese firms in 2020 raised $13.5 billion in IPOs in the United States, up from $3.5 billion in the previous year.

Founded in 2018, the company sells vaping products under the RELX brand name and is headed by Kate Wang, the former head of Uber Technologies Inc’s China operations.

RLX posted a net income of 108.6 million yuan ($16.76 million) on net revenue of 2.2 billion yuan ($339.45 million) for the nine months ended Sep. 30, 2020, according to a filing.

Reuters 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.