SHANGHAI :
Vaping Foundry Smoore More Than Doubles IPO Price on Hong Kong Debut
Tang Shihua
DATE:  Jul 10 2020
/ SOURCE:  Yicai
Vaping Foundry Smoore More Than Doubles IPO Price on Hong Kong Debut Vaping Foundry Smoore More Than Doubles IPO Price on Hong Kong Debut

20200710-15 -- Vaping Foundry Smoore More Than Doubles IPO Price on Hong Kong Debut


(Yicai Global) July 10 -- Chinese electronic cigarette foundry Smoore International Holdings listed on the Hong Kong Stock Exchange today. It found great favor in investors’ eyes as its opening price rose over 100 percent to give it a nearly CNY160 billion (USD22.65 billion) market value.

Smoore’s stock [HKG:06969] opened at twice its HKD12.4 (USD1.60) initial public offering price this morning and has stayed high since then, rising 115.73 percent to HKD26.75 at noon.

The Hong Kong-based company will use half of the proceeds to increase its output of vaping products and 25 percent of it to improve production efficiency, while 20 percent will go to research and development, with the remainder for daily operating expenses, per the prospectus.


Smoore’s major customers, whose main business is electronic cigarette production, include international tobacco giants such as Japan Tobacco and British American Tobacco. Its revenue from the US was CNY1.7 billion (USD242.6 million) last year, making up 21.8 of the total at a time when that from the Chinese mainland was CNY1.6 billion, or 20.9 percent. Its last year’s revenue from Hong Kong was CNY2.01 billion, representing 26.4 percent. The regions with top sales also include Japan, Switzerland and the UK, per its prospectus.

The company’s sales revenue has ballooned at an average annual rate of more than 100 percent since 2016, reaching CNY7.61 billion last year, compared with CNY3.4 billion in 2018. The company’s net profit has grown even faster, reaching CNY2.17 billion last year, compared with a mere CNY730 million in 2018, its prospectus shows.
Editor: Ben Armour

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Keywords:   IPO Debut,Stock Market,E-Cigarettes,Smore International