{"id":9462,"date":"2021-08-17T18:07:14","date_gmt":"2021-08-17T15:07:14","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=9462"},"modified":"2023-06-22T17:50:19","modified_gmt":"2023-06-22T14:50:19","slug":"ipo-aspire-global-a-vape-from-china","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/08\/17\/ipo-aspire-global-a-vape-from-china\/","title":{"rendered":"IPO Aspire Global: a Vape from China"},"content":{"rendered":"\n

Antismoking campaigns have been very active all over the world recently: there are strict advertising bans, global societies introduced a lot of different restrictions for smoking in public places, and actively promotes a healthy lifestyle. Nevertheless, the number of those who smoke hasn’t dropped much. People find ways to replace smoking with electronic cigarettes, vapes, and IQOS. Some even manage to quit smoking using them. A conventional pack of cigarettes we all got used to is almost history now.<\/p>\n\n\n\n

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Aspire Global logo<\/em><\/figcaption><\/figure>\n\n\n\n

Aspire Global specializes in manufacturing electronic cigarettes and is planning to have an IPO at the NASDAQ on August 20th. The company’s shares will start trading under the “ASPG” ticker on August 24th. Earlier, the IPO was postponed due to political risks in China. Let’s discuss the company’s business and find out how interesting Aspire Global shares are for mid\/long-term investments<\/a>.<\/p>\n\n\n\n

<\/span>Business of Aspire Global<\/span><\/h2>\n\n\n\n

The company was founded in 2010 in Shenzhen, China. Aspire is a family-owned company, its founder and CEO is Tuanfang Liu. The company employs over 1,300 people. Aspire ownership structure can be found below.<\/p>\n\n\n\n

\"Aspire<\/a>
Aspire Global ownership structure<\/em><\/figcaption><\/figure>\n\n\n\n

The issuer is engaged in the development, commercialization, and sales of electronic cigarettes and accessories for them. The company also offers open and closed vape systems. In the future, Aspire is planning to sell vapes for medical cannabis. Basically, the company is engaged in direct sales to its clients but also working with OEM (Original Equipment Manufacturer), when its partners can sell the company’s products under their own brands.<\/p>\n\n\n

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Because of the coronavirus pandemic, Aspire had to shut down its production for three months. However, it didn’t result in losses but only a reduction in profit, that’s why one can say that the company’s business model is pretty reliable.<\/p>\n\n\n\n

The lion's share of sales is made in the European Union (61%), North America (22.6%), and China (16.3%). In the USA, Aspire is pressured by competitors: the company’s revenue here dropped from 41% to 22.6%, while in Eastern Asia it rose from 1% to 16.3%.<\/p>\n\n\n\n

The next topic to cover is the company’s target market and its prospects there.<\/p>\n\n\n\n

<\/span>The market and competitors of Aspire Global<\/span><\/h2>\n\n\n\n

As of 2020, over 1 billion people in the world smoke, and the volume of this market is $936 billion. It is expected that the market will reach $1.02 trillion by 2023 with an average annual growth rate of 3%.<\/p>\n\n\n\n

According to Euromonitor, the number of people who smoke electronic cigarettes last year was 55 million with a market volume of $22 billion. By 2024, it may reach $120 billion with a cigarette market share of 10%. In this case, an average annual growth rate may be 25%.<\/p>\n\n\n\n

We should note that almost 90% of all electronic cigarettes are produced in China but the country consumes only 10% of them. The Chinese market is estimated at $2.7 billion. According to ambitious estimates, by 2023 it may reach $11 billion with an average annual growth rate of 65.9%. The remarkable thing is that the company’s sales in the Asia-Pacific region are increasing even faster.<\/p>\n\n\n\n

The company’s key competitors are:<\/p>\n\n\n\n