Fly-E Group, Inc. (NASDAQ: FLYE), a company specializing in electric bikes, scooters, motorcycles, and accessories, celebrated its transition to a public entity by ringing the closing bell at Nasdaq MarketSite. The ceremony, led by chairperson and CEO Andy Ou, marked a significant milestone for the company following its successful initial public offering (IPO) last week.
This event underscores the burgeoning potential of the electric two-wheel vehicle market, which includes electric bikes, scooters, and motorcycles. The market was valued at $24.67 billion last year and is projected to grow to $50.78 billion by 2032. The growth is driven by global efforts to reduce emissions and the increasing congestion in urban areas, making electric two-wheelers an attractive, eco-friendly transportation alternative.
Fly-E's IPO involved a 2.25 million share offering priced at $4 per share, raising $9 million. The company also provided underwriters with a 30-day option to purchase an additional 337,500 shares at the IPO price, minus underwriting discounts and commissions. The proceeds from the IPO will be utilized for purchasing inventory, covering production costs, expanding retail stores, advancing technology, research and development, and general corporate purposes.
Founded in 2018 and headquartered in New York City, Fly-E focuses on designing, manufacturing, and selling smart electric motorcycles, bikes, scooters, and related accessories under the brand “Fly E-Bike.” The company currently offers 21 e-motorcycle products, 21 e-bike products, and 34 e-scooter products, available both online and through a network of 39 retail stores primarily located in major U.S. metropolitan areas. Fly-E is also expanding its retail footprint to South America and Europe with plans to use IPO proceeds to further penetrate densely populated metro areas.
Fly-E's manufacturing operations are largely based in China, with final assembly taking place in the U.S. This strategy helps keep costs down while enabling the company to focus on becoming a leader in the electric two-wheel transportation market.
Financially, Fly-E stands out among recent IPOs due to its stability and profitability. The company reported $1.2 million in net income for the first nine months of 2023, with revenue growth of 46% during the same period. With a gross margin of 39%, Fly-E is both EBITDA and net profit positive. The company attributes its strong margins to its growing maintenance and service business, as well as sales of accessories, which are expected to increase along with the number of in-use bikes.
The stability and growth potential of Fly-E serve as positive indicators for investors, showcasing that it is possible for a company to be an early-stage growth stock while maintaining financial discipline. As the market for electric two-wheel vehicles continues to expand, Fly-E's strategic positioning and financial health make it a noteworthy company to watch.
The Nasdaq MarketSite's recognition of Fly-E highlights the company's emerging significance in the market, signaling to investors the importance of paying attention to this growing sector. The ceremony not only celebrates Fly-E’s achievements but also emphasizes the future potential of the electric two-wheel market, which is set for substantial growth in the coming years.
