A UK vaping brand is proving that there is a future in the industry by floating its shares in the public marketplace. The e-cig industry is expected to double in value by 2020, and investors are starting to take note of the potential for profit. In the future, we may see more vape companies joining the stock market in order to gain valuable investment and cement their position of influence in the market.
Supreme is the first traded vape company
The public listing has been announced by Supreme, which is the parent company of the KiK and 88vape brands. The company mainly supplies supermarkets and wholesalers with batteries and lightbulbs, but it is also a key supplier of liquids, e-cigs and accessories. In 2017, it turned over a modest profit of around £70 million, and it expects to increase annual turnover during 2018 as the e-cigarette market itself continues to grow.
Shares in the company will appear on Aim, the smaller cousin of the London Stock Exchange. It should appear later this month or early in June, and the company will have an opening market value of around £150 million. Last year, Supreme’s pre-tax profits were around £7 million, but the SME sees a chance to more than double its annual income with the public listing.
Will investors and traders back a vape company?
Other vaping companies will be eyeing the move by Supreme with keen interest. The brand hopes it will generate £10 million from the public listing. If investors do flock to buy shares in the growing enterprise, it will signal confidence in the vaping market which other brands could start to capitalise on.
There are signs that the vaping industry will keep growing steadily. Last year’s financials revealed that UK vaping brought in £1 billion. Experts suggest that this figure will rise to £2 billion by 2020. That suggests investors could make a serious return if they jump on board early on, so the Supreme listing could attract some interest.
The future of the vaping market
If the stock exchange experiment is successful, other brands are sure to follow suit. Vaping certainly appears like it is here to stay, with hundreds of new converts moving on from smoking every day. Vaping is safer than tobacco smoking and a lot more pleasant – the variety of flavoured e-liquids means there is a vape to suit everybody.
Whether or not more UK companies join the public exchange, it is certainly a clear sign that vaping is here to stay. Only companies that are well trusted, and viable in the long term, will find a space on the exchange, so confidence in vaping may just have reached an all-time high.