Xiaomi-backed eco-chain company Viomi Technology, a home appliance supplier, has reportedly filed for a Nasdaq IPO. Trading under the ”VIOT” ticker symbol, it aims to raise up to US$200 million. Morgan Stanley and China International Capital Corp. (CICC) are the joint underwriters for this deal. Proceeds from the IPO will be used towards R&D, marketing, as well as strategic investments.
It counts the likes of Xiaomi, Sequoia Capital, and Singapore’s sovereign wealth fund GIC as investors. Chen Xiaoping, Viomi Technology’s CEO & founder, is the largest individual shareholder, owning 41.3% of the total number of shares, according to its prospectus. Xiaomi is also Viomi’s most important customer for the firm, with 60% of the revenue comes from Xiaomi.
Established in 2014 and headquartered in Foshan city, Guangdong, the internet-connected home appliance seller’s core products include dishwashers, air purifiers, water purifiers, and smart refrigerators that are controlled by the firm’s mobile applications. Viomi’s air and water purifiers are two of the very popular items among its customers of almost 1.2 million.
Viomi’s business has been growing rapidly, with net revenue grew by close to 3 times to close to US$132 million year-on-year from 2016 to 2017, making a net income of US$14 million last year. In terms of operating expenses, the largest jump over the same period was posted for research and development (R&D) and selling and marketing expenses, increasing from around RMB 30 million to RMB 61 million and RMB 21 million to RMB 95 million respectively.
Editor: Ben Jiang