Market Overview

Niu Technologies' IPO: What You Need To Know

Niu Technologies' IPO: What You Need To Know

Chinese manufacturer Niu Technologies is set to begin trading on the Nasdaq Global Market under the ticker symbol “NIU.”

The Company

Niu Technologies designs, manufactures and sells smart e-scooters on a global scale. According to the company's preliminary F-1 filing, Niu is the largest lithium-ion battery-powered e-scooter company in China, in addition to leading the European market.

As of June 2018, the company sold over 431,000 products and held a 26 percent market share in sales volume and 39.5 percent in sales value.

The product portfolio consists of the N, M and U series, each with several models and specifications.

Niu said it has an opportunity to expand on strong brand awareness.

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“We offer the NIU app as an integral part of the user experience, and the app had over 457,000 registered users as of June 30, 2018. NIU fan clubs are established in over 50 cities in China, where fans actively organize NIU scooter-related events.”

As of 2018, the company collaborates with 205 partners and over 500 franchise stores in China, as well as an additional 18 distributors worldwide.

“The strong brand awareness and customer loyalty have given us exceptional pricing power. Capitalizing on our premium brand, we have also been able to sell lifestyle accessories, which are well-received by customers," the company said.

Benzinga's breaking-news platform, Benzinga Pro, covers many IPO openings in real time. To see these indications, sign up for Benzinga Pro and filter by the "IPOs & Offerings" news category.

The Details

Niu is offering 8.3 million American depositary shares priced in a range between $10.50 and $12.50. The company hopes to raise $191 million from the offering.

Niu plans to use the proceeds from its IPO as follows, according to its F-1 filing:

  • $30 million for the upgrade and expansion of manufacturing facilities.
  • $30 million for research.
  • $15 million for distribution network expansion as well as general corporate purposes.

The main underwriters of the IPO are Credit Suisse, Needham & Co. and Citigroup.

The stock opened Friday at $8.50 per share.

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Photo courtesy of Niu Technologies.

Posted-In: e-scooters IPONews Previews IPOs Top Stories Trading Ideas Best of Benzinga


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