Shenzhen News (Shenzhen)—Shenzhen e-cigarette maker RELX Technology Inc. has raised $1.4 billion in a US initial public offering, giving the company a market value of about $46 billion.
The company, backed by Sequoia Capital China, sold 116.5 million shares for $12 apiece in its trading debut. Citigroup Inc and China Renaissance Holdings Ltd led the IPO that saw the share price jump 146%.
RELX, founded in 2018, is China’s largest e-cigarette maker with 62.6% of the country’s market. The vaping industry has boomed in China despite increased regulations amid concerns about its potential health effects. Online sales of e-cigarettes is banned in China.
The country is the world’s largest potential vaping market, with an estimated 286.7 million adult smokers in 2019. Despite this, vaping products have a 1.2% market penetration rate, compared to 32.4% in the US.
Another Shenzhen-based e-cigarette company, Smoore International Holdings Ltd, listed in Hong Kong last year and has gained over 500% from its offer price.