Shares’ prices of RLX Technology Inc., a China-based vaping company, snowballed as much as 145 per cent in NYSE debut on Friday, proffering the vaping start-up a market cap of more than $35 billion. In point of fact, RLX Technology Inc., the Beijing-headquartered vaping industry start-up founded back in the 2018s, had offered 116.5 million American Depository Shares (ADS) on initial public offerings (IPO), while the China-based company had raised a lump-sum of $1.4 billion after beating an IPO price target range between $8 and $10 apiece.
RLX sold off its shares at $12 apiece in an IPO a day earlier, reflecting a spike in investors’ appetite for new stocks in New York Stock Exchange following a lacklustre 2020 which mostly had witnessed a number of healthcare and insurance stocks’ debuts.
Aside from that, as US investors were heavily betting on the strongest IPO market in NYSE in more than half a decade, shares’ prices of RLX opened up Friday’s market at $22.34 apiece, roughly 86 per cent above its IPO pricing of $12 per share, while after having been shied a little in early morning trading, shares’ prices of RLX Technology Inc.
had wrapped up the day 145 per cent higher to $29 per share, shrugging off the frets of a sharp pick-up in scrutiny of Chinese listings in the US stock exchanges.
RLX jumps 145% in debut as investors look beyond Trump-era
Although, several industry analysts were quoted saying that there might not be a quick rollover to a scrapped Sino-US trade relationship, RLX’s debut in the US money markets suggests that the investors might start off looking beyond the Trump Administration what analysts believed led to a rapid escalation of trade tension between the world’s first- and second-largest economy.
On top of that, despite landfalls of a number of stumbling blocks for Chinese companies including a horrendous ban on selling US-borne tech products to Chinese companies, Chinese firms had raised as many as $13.5 billion in US IPOs last year, up from a $3.5 billion raised a year earlier.