China’s first bike-sharing IPO aims to raise $96 million

Almaty. August 7. Silkroadnews – China’s first bike-sharing IPO is aimed to attract $96, Financial Times reported.
Changzhou Youon Public Bicycle System will be the first listed bike-sharing company in China following a public float that aims to raise 644.4 million yuan ($96 million), with the company value of $384 million. Subscription for offer to the amount of a quarter of the value of the company starts on Monday. Shares are offered at 26.85 yuan per share, the statement said on Monday.
The bike-sharing is said to thrive in China and there are at least 10 start-ups offering such services with payment via smart phones, the largest of which are Mobike and Ofo. Yet, the publication notes, not all the initiatives are so successful, e.g. one of the companies was forced to close after 90% of its bicycles were stolen.
It is reported that Youon, based in Jiangsu Province in China, said it plans to use part of the proceeds to create a new research center.
The company’s revenues increased 20.5% year-on-year in the first quarter of 2017 up to 193 million yuan, with 7% net profit growth up to 26.9 million yuan. The company reported that by the end of 2016 it had reached 7.5 million users in 210 cities and counties of China and had more than 50,000 bicycles at the end of March 2017. This April IPO Youon first received regulatory approval, but then in May suspended the presentation due to copyright infringement.