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China's leading e-cigarette brand RLX Technology sets terms for $1 billion US IPO

January 15, 2021

RLX Technology, a leading e-cigarette brand in China, announced terms for its IPO on Friday.

The Beijing, China-based company plans to raise $1.0 billion by offering 116.5 million ADSs at a price range of $8 to $10. At the midpoint of the proposed range, RLX Technology would command a market value of $14.0 billion.

Operating under the RELX brand, the company boasts a 62.6% market share in China for closed-system e-vapor products in terms of retail sales. The company has partnered with 110 authorized distributors to supply its products to over 5,000 RELX Branded Partner Stores, and over 100,000 other retail outlets nationwide, covering over 250 cities in China. Revenue nearly doubled in the nine months ended September 30, 2020 to $324 million, with net income of $16 million.

RLX Technology was founded in 2018 and booked $404 million in sales for the 12 months ended September 30, 2020. It plans to list on the NYSE under the symbol RLX. Citi is the sole bookrunner on the deal. It is expected to price during the week of January 18, 2021.