E-Scooter Maker Niu Takes Nasdaq Offering Down 30%; Proposes Shares at Up to $12.50
The Beijing-based company said in its amended prospectus that it seeks to sell 8.3 million American depositary shares in the price range of $10.50 to $12.50 per share.
Niu Technologies, seeking to become a publicly traded company on the Nasdaq Global Market under the ticker "NIU," has dropped its offering amount to a maximum of $103.75 million.
The Beijing-based company, which makes smart e-scooters and has a global customer base, said in its amended prospectus filed Tuesday that it seeks to sell 8.3 million American depositary shares in the price range of $10.50 to $12.50 per share. Each ADS represents two Class A ordinary shares.
The price was a 30 percent decline from the $150 million the company targeted in its initial prospectus in September.
Founded in 2014, Niu distributes several models of its scooters, as well as lifestyle accessories, through online and offline channels in 23 countries. As of June this year, the company has sold 431,500 e-scooters in China and overseas, especially growing its presence in e-scooter markets in Europe, Southeast Asia, and India.
The company posted strong revenue growth in its recent financials. For 2017, its revenue more than doubled year-over-year to $116.2 million. For the six months through June, Niu reported revenue of $84.2 million, up 95 percent from the same period last year. The company has not yet turned to profit, however, with first-half losses soaring 226 percent year-over-year to $47.6 million.
In today's filing, it was unclear whether the company reduced the pricing of its shares or the number of shares it intended to offer. Previously, Niu was rumored to be considering an IPO of $300 million.
The underwriters on the deal are Citigroup Inc., Needham & Co., and Credit Suisse.
The proceeds of the stock sale would be used to upgrade and expand its manufacturing facilities, as well as for research and development, network expansion, and general purposes, Niu said.