(Yicai Global) Oct. 11 -- Chinese electric scooter maker Niu Technologies has set the terms for its upcoming initial public offering on the Nasdaq, saying it expects to raise up to USD119 million, a fifth less than its initial filing.
The Beijing-based firm, which pitches itself as China's first lifestyle brand for urban mobility, plans to issue 8.3 million American Depositary Shares at between USD10.5 and USD12.5 apiece, according to a filing with the Securities and Exchange Commission. At a USD11.5 midpoint, that would raise around USD95 million.
Credit Suisse and New York's city group will be joint lead underwriters with support from independent investment bank Needham & Co. The IPO could raise an additional USD24 million if the sponsors exercise their over-allotment option.
Niu's total revenue last year was CNY769 million (USD116 million), more than double its 2016 takings but resulting in a net loss of CNY184 million. In the first half of this year, it had pulled in CNY557 million -- again almost doubling, but it lost CNY314 million.
Rumors this summer suggested Niu would attempt to raise as much as USD300 million in its IPO, but the much lower figure follows a string of Chinese companies who have had their offshore listings overhyped.
Electric carmaker Nio, which has been hailed as China's Tesla, initially hoped to raise USD1.8 billion on the New York Stock Exchange last month, but lopped 30 percent off that before a disappointing debut that raised just USD1 billion. Tech manufacturer Xiaomi also trimmed its valuation by 30 percent to USD55 billion before it listed in Hong Kong in July.
Niu's largest shareholder is the Glory Achievement Fund, run by Niu founder Li Yinan, with a 43.8 percent stake. Granite Global Ventures holds a pre-IPO share of 11.2 percent and has expressed an interest in spending as much as USD10 million to pick up additional shares in the offering.
The manufacturer was the largest maker of lithium battery-powered electric scooters by overall sales last year, it claimed in its prospectus. It had also sold more than 431,500 units in China, Europe and other regions by the end of the first half this year.
Editor: James Boynton