Days After Successful IPO, Fly-E Rings The Closing Nasdaq Bell And Celebrates E-Two-Wheel Market’s Future
Detroit, Michigan
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June 14, 2024 08:45 AM Eastern Daylight Time
By Meg Flippin, Benzinga
Ringing the opening or closing bell on the Nasdaq MarketSite is a rite of passage for a lucky few companies bestowed with that honor each year. It not only celebrates a company’s status as a public entity but showcases its strength in the market and with investors. Not to mention, it brings a little brand recognition. After all, the closing bell is broadcast on screens across the nation.
Fly-E Group, Inc. (NASDAQ: FLYE), the maker of electric bikes, scooters, motorcycles and accessories, joined that elite club, with chairperson and CEO Andy Ou ringing the closing bell Wednesday. The gesture celebrated a successful startup that completed its initial public offering last week.
It also comes at a time when the electric bike, scooter and motorcycle market is taking off. The global electric scooter market had a value of $24.67 billion last year and is predicted to reach $50.78 billion by 2032. Driving adoption is a push by governments around the world to curb emissions. With cities getting more crowded, hopping on an e-scooter or bike is not only greener, but a quick and easy way to get around.
Fly-E Raises $9 Million From IPO
In Fly-e’s IPO, the 2.25 million share offering was priced at $4 per share. The company, which raised $9 million in its IPO, granted underwriters a 30-day overallotment option to purchase an additional 337,500 shares at the IPO price, less underwriting discounts and commissions.
Fly-e is using net proceeds from the offering to cover the purchase of inventory and production costs of its vehicles, the expansion of its retail stores, its technology, research and development initiatives, and for general corporate purposes.
Started in 2018 and currently based in New York City, Fly-e is an electric vehicle company that is principally focused on designing, installing and selling smart electric motorcycles, electric bikes, electric scooters and related accessories under the brand “Fly E-Bike”.
The company’s product line currently consists of 21 e-motorcycle products, 21 e-bike products and 34 e-scooter products, which it sells both online and through a network of 39 retail stores mainly in the U.S. The stores are strategically positioned in major metropolitan U.S. markets. In addition, Fly-e is opening locations in South America and Europe.
Fly-e plans to expand its footprint of stores to other densely populated metro areas with some of the proceeds from its IPO. To keep costs down, most of the company’s manufacturing is handled in its China-based factories and assembled in the U.S. The goal is to become a leader in the electric two-wheel transportation market.
High-Flying And Profitable
While Fly-e is a high-flying growth IPO, its financials are much more stable than the run-of-the-mill startups that find profitability elusive as they chase growth. Fly-e reported $1.2 million in net income for the first nine months of 2023. Revenue grew 46% in the same time frame. Gross margins are 39% and the company is EBITDA and net profit positive.
Fly-e attributes its margin strength to its growing maintenance, service business and accessories sales. That should increase further, along with an uptick of in-use bike counts, the company reports. All of this should be welcome news to its investors since cash-burning IPOs are losing their luster. Fly-e demonstrates a company can be an early-stage growth stock and still show financial discipline.
The e-scooter, bike and motorcycle market is taking off, and Fly-e is emerging as an important player. It's a story investors may want to pay attention to. After all, the Nasdaq MarketSite certainly is.
Featured photo by Nick Chong on Unsplash.
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