Sign Up

A Three-Dimensional IPO With Low-Cost 3D Printer Story

The company has filed to list in Hong Kong, helping to build a mass market for 3D printers costing as little as $199 each

Key Takeaways:

Hong Kong IPO candidate Creality has democratized 3D printing by reducing consumer printer prices from $4,000 and higher to as low as $199 over a decade

The 3D printer maker generated an 89 million yuan profit last year despite operating with significantly lower margins than its Western peers

The founding story of 3D printer maker Creality 3D Technology Co. is grounded in China's love affair with cutting costs to the bone. The company's four co-founders first met at a 3D trade show where they shared a common observation: the industry was dominated by expensive industrial-grade machines. Only one or two brands were making consumer-level products, most of those imported and relatively pricey at 30,000 ($4,178) to 40,000 yuan each.

Co-founder Liu Huilin later said in media interviews that such prohibitive prices motivated the four to establish their company in 2014 with a mission of making 3D printing technology truly accessible and affordable for consumers. Now, the company is trying to sell its printed-from-the-ground-up story to investors, applying last week for a Hong Kong IPO with its filing of a preliminary prospectus.

A decade after its founding, the company has largely brought its vision of "3D printers for the masses" to reality. Shenzhen-based Creality sells its printers for as little as $199 and has become one of the largest players in the global market for consumer-use 3D printers. Its ability to dramatically lower prices has helped democratize access to 3D printing technology, bringing it within reach of individual consumers, educators, and small businesses worldwide.

Creality's preliminary prospectus shows it plans to raise fresh funds to advance its R&D capabilities while expanding further into overseas markets, which are already a major revenue source. While the company hasn't disclosed a specific fundraising target, its selection of leading domestic investment bank CICC as the listing's sole underwriter suggests the offering will be relatively large, perhaps raising up to $100 million or more.

Creality's financial performance ...