On June 29, e-cigarette maker Smoore announced on the Hong Kong Stock Exchange that the company will issue shares from June 29 to July 3, issuing 574 million shares, of which 88% are international offerings and 12% are public offerings. There is also no more than 15% over-allotment option. The issue price per share is between 9.6-12.4 Hong Kong dollars and is expected to be listed on July 10.
Smoore, established in 2009, mainly provides vaporizing technology solutions, including electronic atomizing devices and electronic atomization components for manufacturing heat not burn products based on ODM. According to Frost & Sullivan, Smoore is the world’s largest manufacturer of electronic vaporizing devices in terms of revenue in 2019, accounting for 16.5% of the total market share. On December 19, 2019, Smoore issued a prospectus on the Hong Kong Stock Exchange and planned to list in Hong Kong.
The prospectus shows that in 2016-2019, Smoore’s revenue was 707 million yuan, 1.565 billion yuan, 3.434 billion yuan, and 7.611 billion yuan, with a compound annual growth rate of 120.8%; gross margins were 24.3%, 26.8%, and 34.7%, respectively. , 44.0%, showing an upward trend. From a regional perspective, the Smoore market is concentrated in the United States, China, Japan and Europe. Among them, from 2016 to 2019, the revenue from the largest market in the United States accounted for 50.1%, 42.7%, 40.4%, and 21.8%, respectively. At present, Smoore has achieved profitability. The company’s net profit increased from 106 million yuan in 2016 to 2.174 billion yuan in 2019, with a compound annual growth rate of 173.5%.
It is reported that based on the issue price ceiling calculation, Smoore plans to raise HK$7.12 billion before exercising the over-allotment right. The company expects to start trading on the Hong Kong Stock Exchange on July 10.