Chinese vaping firm RLX raises US$1.4b in US IPO: sources
[NEW YORK] Chinese vaping firm RLX Technology sold shares in its US initial public offering (IPO) on Thursday at US$12 a piece, above its target range, to raise US$1.4 billion, according to three sources with direct knowledge of the matter.
The IPO values Beijing-based RLX at US$18.6 billion. The company had set an initial target price range of US$8-US$10 per share for a sale of around 116.5 million shares.
RLX did not respond to a request for comment and the sources could not be named as the information had not yet been made public.
RLX's share offering comes as Chinese listings face increased scrutiny from the US government.
Former President Donald Trump signed legislation last month that would kick Chinese companies that do not adhere to American auditing standards off US stock exchanges.
The political skirmishes between the United States and China did not dissuade US-based investors from buying into the deal, said one source on condition of anonymity as he was not authorised to talk to media.
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"Not one person said the US, China tensions are holding me back," the person with direct knowledge said.
Mr Trump also signed an executive order in November banning US investment in companies deemed to have ties to the Chinese military.
In 2020, there were 35 IPOs by Chinese firms in the United States raising a total of US$13.5 billion, up from US$3.5 billion in the previous year. So far in 2021, three Chinese companies have already raised US$319 million from IPOs, according to data provider Dealogic.
Founded in 2018, RLX earned 2.2 billion yuan (US$450.5 million) in the first nine months of 2020, up 93 per cent from the previous year. The company sells vaping products under the RELX brand.
It is controlled by chief executive Kate Wang, the former head of China operations for US ride hailing firm Uber Technologies.
Shares in RLX are due to begin trading on the New York Stock Exchange on Thursday under the symbol "RLX". Citigroup and China Renaissance are the lead underwriters.
REUTERS
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