What They Say
Caixin reports that despite ‘miniscule sales’ and ‘astronomical financial losses’, shown in an IPO prospectus, Royole wants to raise $2.2 billion to devote half of it ‘replenish its capital supplies’ and the other half to R&D and ‘factory upgrades’. The company hopes to be listed on the Star Market (described as ‘Nasdaq-like’). Caixin said:
“The controversial panel-maker does two main things: make flexible smartphone screens and burn cash”.
The IPO would value the firm at around $9 billion, which Caixin reports is up 40% from its valuation in May, when it raised $400 million.
What We Think
I’d don’t think I’d put my pension funds into this IPO. Last summer, the firm was talking of a US IPO, but has turned to its home country instead. Flexible OLED is an attractive growth opportunity, but if the last year has proved anything, it is that making OLEDs is really difficult. (BR)
Royole’s Flexpai 2
