Morning Report: Viomi priced its IPO at $9 per share, selling 11,400,000 shares in its debut. Here’s what you need to know.
Our multi-week domestic IPO binge continues. This time, Viomi is going out.
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This morning Chinese-based Viomi priced its US-listed IPO at $9 per share. The firm had a range of $9 to $11 per share in mind for its debut, putting its IPO at the lower end of expectations.
Selling 11.4 million shares, the home-centered IoT company raised $102.6 million. As MarketWatch notes, the firm may sell another 1.71 million shares to underwriters, bringing its potential haul to $118 million.
Inclusive of its IPO share – but not the underwriter option – Viomi has just over 90 million shares outstanding, giving it a market cap of around $810 million. Viomi is, therefore, not a unicorn at the time of its debut. That’s no sin, but it does make the IPO one of the smaller that we’ve examined.
Its valuation is not the only interesting thing about Viomi, the firm also has profits. In the first half of 2018, Viomi managed a slim-ish gross profit of $43.8 million off $157.2 million in revenue. The firm managed to keep $10.6 million of its gross profit as net income.
The firm was also profitable in 2017, and partially so in 2016, though its income statement for that year is a bit odd. All that and Viomi had huge growth in recent quarters – its top line expanding from 270.6 million yuan in the first half of 2017 to 1.04 billion yuan in the first half of 2018. Profiting while growing that quickly is impressive.
But enough of all that, Viomi will start trading today and we’ll know more then. For now, this is one more tech debut in the bag and a few more points on the board for the Chinese startup ecosystem.
Top Image Credit: Li-Anne Dias