Niu Technologies Files For $150 Million U.S. IPO

Sep. 28, 2018 12:50 PM ETNiu Technologies (NIU)1 Comment

Summary

  • Niu Technologies intends to sell $150 million of ADSs representing underlying Class A shares in a U.S. IPO.
  • The firm manufactures and sells smart electric scooters in Chinese and European markets.
  • NIU is growing rapidly but is also losing increasing amounts of money as the firm scales its operations.
  • This idea was discussed in more depth with members of my private investing community, IPO Edge. Start your free trial today »

niu technologies ipo

Quick Take

Niu Technologies (NASDAQ:NIU) intends to raise gross proceeds of $150 million from a U.S. IPO, according to an F-1 registration statement.

The firm provides smart electric scooter urban mobility solutions to users in China and Europe.

NIU is growing rapidly as a company with a large market share of the ‘smart e-scooter’ market.

Company & Technology

Beijing, China-based Niu Technologies was founded in 2014 to improve non-rural mobility through the design, manufacturing, and commercialization of smart electric scooters and related mobility services.

Management is headed by CEO Yan Li, who has been with the firm since 2016 and was previously Principal at KKR/Capstone.

Niu Technologies has developed a portfolio of electric scooters consisting of three series, N, M and U, with multiple models or specifications for each series.

Below is a brief overview video of the Niu NGT and Niu M+ series:

(Source: Niu Mobility)

The company also provides related connectivity solutions and value-added services to its users. Through the cloud-based NIU app, users can receive real-time information relating to their smart e-scooters.

Investors in Niu Technologies included Future Capital Discovery Fund, GGV Capital, Glory Achievement Fund, and IDG Capital. (Source: CrunchBase & F-1)

Customer Acquisition

The company has adopted an omnichannel retail model, integrating the offline and online channels, to sell their products and provide services.

NIU sells its products through its online store, third-party e-commerce platforms, and a “city partner” system in China. It comprised of 205 city partners with 571 franchised stores in over 150 cities in China, and 18 distributors in 23 countries overseas as of June 30, 2018.

Sales and marketing expenses as a percentage of revenue have been trending downward as the table below indicates:

Sales & Marketing Expenses vs. Revenue

Period

Percentage

1H 2018

12.6%

2017

10.8%

2016

25.3%

An enhanced version of this article on my Seeking Alpha Marketplace research service IPO Edge includes my initial commentary on the IPO.

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This article was written by

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