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Vaping brand Ispire Technology slashes share offering by 50% ahead of $21 million IPO

March 17, 2023

Ispire Technology, which sells branded tobacco and cannabis vape devices primarily in the US and Europe, lowered the proposed deal size for its upcoming IPO on Friday. In its latest filing, the company also removed SPDB International as an underwriter.

The Los Angeles, CA-based company now plans to raise $21 million by offering 3 million shares at a price range of $6 to $8. An executive intends to purchase $1 million worth of shares in the offering (5% of the deal). The company had previously filed to offer 6 million shares at the same range. At the midpoint, Ispire Technology will raise 50% less in proceeds than previously anticipated.

Selling shareholders have concurrently registered 1.75 million shares separate from the underwritten offering, which may be offered and sold from time to time.

Ispire sells its tobacco products worldwide, excluding China and Russia, and markets them under the Aspire brand name. It has ceased marketing tobacco vaping products in the US, stating that sales did not justify marketing and regulatory costs. Ispire's products are currently manufactured and supplied by Shenzhen Yi Jia Technology, a Chinese company majority owned by founder and CEO Tuanfang Liu, though the company plans to use a portion of IPO proceeds to build out manufacturing operations in Vietnam and California.

Ispire Technology was founded in 2010 and booked $100 million in sales for the 12 months ended December 31, 2022. It plans to list on the Nasdaq under the symbol ISPR. Tiger Brokers and TFI Securities are the joint bookrunners on the deal.