In this news, we discuss the Chinese vaping company RLX valued at nearly $ 35 billion when it debuts in the US market
(Reuters) – US custodian shares of RLX Technology Inc jumped 86% on its U.S. stock market debut on Friday, giving the Chinese vaping company a market cap of nearly $ 35 billion.
RLX shares opened at $ 22.34, well above their initial public offering (IPO) price of $ 12 per share. Shares rose 58% when trading began on the New York Stock Exchange.
The Beijing-based company offered 116.5 million shares when it went public, raising $ 1.4 billion, after previously targeting a price range of $ 8 to $ 10 per share.
RLX’s debut comes at a time when the US government is increasingly reviewing Chinese listings. Former US President Donald Trump signed a law last month to expel Chinese companies that fail to meet US auditing standards.
Chinese companies in 2020 raised $ 13.5 billion in IPOs in the United States, up from $ 3.5 billion the year before.
Founded in 2018, the company sells vaping products under the RELX brand and is led by Kate Wang, former head of China operations at Uber Technologies Inc.
RLX posted net profit of 108.6 million yuan ($ 16.76 million) on net income of 2.2 billion yuan ($ 339.45 million) for the nine months ended September 30, 2020, according to a record. bit.ly/39Uge7J
($ 1 = 6.4810 Chinese renminbi yuan)
Report by Sohini Podder in Bengaluru; Edited by Ramakrishnan M.
Original © Thomson Reuters
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