First CDR Stock Segway-Ninebot Spikes Over 160% on IPO Day
A Xiaomi ecosystem company, the electrical scooter maker made its way to China's financial market after a year of heightened scrutiny.
On October 29, Segway-Ninebot (689009:SH) went public on the SSE Star Market. Famous for making electrical scooters and service robots, Segway-Ninebot is the first company with a VIE equity structure issuing Chinese Depositary Receipts (CDR) in China. The company’s IPO marks a further openness in the Chinese financial market.
The opening price of Segway-Ninebot on the first trading date was CNY 33, nearly double the IPO price of CNY 18.97. The stock surged to CNY 49.8 at noon, making the market cap surpassed CNY 3.5 billion, and triggered the circuit breaker. The price had dropped to CNY 38.5 by the time of publication.
Segway-Ninebot is now the largest electrical scooter and segway brand in the world. Disclosed by its prospectus, the company recognized CNY 1.38 billion, CNY 4.25 billion and CNY 4.59 billion in 2017, 2018 and 2019 respectively. Over 90% of the income was generated from the sales of scooters and segways. The service robot is still a developing area for the company to commercialize.
The company claimed that proceeds collected from the IPO will be used on the smart electrical vehicle and delivery robot projects, R&D center construction and industry value chain development investment.
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