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Source: asharkyu, Shutterstock
Summary
- UTime raised US$ 15 million via IPO.
- Its current market capitalisation is US$ 679.36 million.
- To meet the requirements of the fast-changing mobile market, UTime is planning to diversify its product portfolio.
Two days after its debut on Nasdaq, stocks of Chinese mobile manufacturing company UTime (NASDAQ: UTME, UTME: US) soared 110.69 per cent as its price went up to US$ 82.17 apiece at market close on April 7. The previous close was US$ 39 and the company had gone public with a price of US$ 4.
Compared to the IPO offering, the stocks climbed by 1954 per cent. Since, it is gaining momentum and attracting investors’ attention, here are some details of the company you should know about.
UTime sold 3,750,000 shares via its IPO to raise US$ 15 million and now the market value of the company is US$ 679.36 million. The company offers 13 types of smartphones and 11 types of feature phones to its customers. It believes in providing budget-friendly mobile phones along with good features to attract customers from low-to-mid income groups and avoid competition from giant smartphone companies.
What is the company's growth strategy?
The company plans to optimize both OEM and ODM customers and orders. This means that UTime will focus on Original Equipment Manufacturing, which will provide goods and manpower to a third party to bring out the final product.
Whereas ODM or the Original Design Manufacturing means that the company will design, develop and manufacture its product for the market.
The company is making a mark in the emerging Southeast Asian markets, Indian sub-continent and Africa, it further plans to grow by improving the distribution network and franchise stores.
To meet the requirements of the fast-changing mobile market, UTime is planning to diversify its product portfolio so that more types of consumer electronic goods are offered to the customers. Apart from smartphones, the company plans to bring in portable Bluetooth speakers and Sunglasses with built-in speakers that will be a one of its kind product.
Source: Pixabay
Why did UTME stock surge?
Social media platforms like Reddit, Discord and StockTwits may be behind the sudden surge. In the recent past, stocks for companies like GameStop and Elite Education Group International witnessed a surge after getting attention on these social media platforms.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
