On March 29, Eastern Time, Monster Charge to the United States Securities and Exchange Commission (SEC) filed an updated prospectus. According to the prospectus, Monster Charging will sell 17.5 million ADS shares at a price range of $10.50 to $12.50 per ADS. The IPO raised $250 million at a valuation of $2.8 billion to $3.4 billion. Hillhouse Capital, Apex Management (HK) Ltd. And Xiaomi Technology formed a cornerstone investor lineup, with a total intention to subscribe $110 million. Monster Charging is expected to debut on the Nasdaq on April 1 under the ticker “EM”.
With the monster charging to the United States IPO, sharing the heat of the charging treasure industry climbed again. For the industry, the first share of charging treasure has been settled. But with the monster charging IPO, Meituan once again into the bureau, whether the balance of “one beast three electricity” will be broken, become another industry focus.
The trend of shared charger started in 2017. At that time, with the east wind of sharing economy, capital burst into the market and the industry grew brutally. Similar to the development trajectory of many emerging industries, the charge-sharing industry then ushered in the great waves and cleared the sand. After several rounds of reshuffling, the industry returned to rational development and basically formed the dominant pattern of “one beast, three electricity” (monster charging, street power, electricity, small power). With the further accumulation of resources and operational advantages of the head platform, the Matthew effect of the industry is gradually highlighted.
According to an industry report released by iResearch Consulting, Monster Charging ranked first in the shared charging industry with a market share of 34.4% in 2020, becoming the largest shared charging operator in China. By the end of 2020, Monster Charge had built a shared charging network containing more than 664,000 POI (point points) and accumulated more than 219 million registered users, according to the company’s prospectus.
In addition, in 2019, Monster charging revenue was 2.022.3 billion yuan. Despite being severely affected by the COVID-19 epidemic in the first half of 2020, Monster Power’s revenue reached 2,809.4 billion yuan (US $430.6 million) in 2020, up 38.9% year on year, indicating it is in a period of rapid growth.
While maintaining rapid expansion, Monster Charge’s profitability has been proven. In 2019, Monster Charging’s net profit was 166.6 million yuan, with a net interest rate of 8.2 percent, according to the prospectus. In 2020, Monster Charging made a net profit of 75.4 million yuan ($11.6 million), with a net profit rate of 2.7 percent. Non-US GAAP, Monster Charge’s adjusted net income was RMB206.6 million and RMB112.6 million (US $17.3 million) for 2019 and 2020, respectively.
It is reported that, at present, in addition to equipment stationed, according to the brand characteristics to create custom cabinet and charger and other services, monster charging is also constantly exploring and partners in the platform and technical advantages of integration.
Monster Charging was the first to submit the prospectus in the United States. As the first stock on the track, it is expected to be the first to enjoy the valuation premium brought by the funds closely focused on the shared charging industry, which is conducive to the company’s subsequent value discovery and business growth. At the same time, the virtuous circle under the scale effect and network effect will also provide sufficient development power for the monster charging. (chu hoi)