Maker of 77.7 million flying motorcycles prepares for IPO in Japan

A former Merrill Lynch derivatives trader with a passion for Star Wars is preparing to go public with his flying motorcycle startup in Japan.

Tokyo-based ALI Technologies Inc. was founded by Shuhei Komatsu as a drone maker in 2016 before moving on to bigger plans, opening sales of its XTurismo Limited Edition hoverbike in October. The 77.7 million-person hauler can reach a top speed of 80 kilometers per hour and travel for up to 40 minutes per charge, according to the company. The bike has so far featured largely as a curiosity at public events such as a recent baseball game, but ALI Technologies President Daisuke Katano says Middle Eastern countries are getting on board. keenly interested.

“The need for these bikes will be higher in desert locations or other difficult terrain,” Katano said in an interview. “The vehicle will allow people to travel where the roads are bad and inaccessible to cars, as well as on bodies of water.

The company has selected lead underwriters for an initial public offering in Tokyo’s mother market for startups in what will be the country’s first launch of its kind. It is currently engaged in discussions with the Tokyo Stock Exchange, Katano said, declining to specify an estimated valuation or timeline for the offering.

Flying personal vehicles were part of science fiction for decades before Star Wars, which featured a famous racing scene with pods zooming near ground level. The ALI Technologies bike is also not intended to fly far through the air, mainly helping to traverse inhospitable terrain. It’s built like an enlarged drone with a traditional motorcycle seat and steering on top.

Komatsu’s founder described his goal as achieving an “air mobility society, where cars, bicycles and other vehicles can carry people through the skies.

ALI Technologies has attracted investment from several well-known Japanese companies, including Sega Sammy Holdings Inc., Nagoya Railroad Co., Nakanihon Air Service Co., Kyocera Corp. and Mitsubishi Electric Corp. Football star Keisuke Honda, who played for the national team at the 2018 World Cup, is also an investor. ALI Technologies’ drones were the first thing to attract investors, but the startup is also developing capabilities in artificial intelligence and blockchain technology, a Nagoya Railroad spokesperson said.

“There are expectations for growth, so once products like these hit the headlines, the company’s shares could be repurchased, getting a boost from retail investors,” Tomoichiro Kubota said. , senior market analyst at Matsui Securities Co. “But the company is not yet at a level where people can talk about detailed earnings outlook, which makes it difficult to identify an appropriate valuation figure.

While a successful IPO will make ALI Technologies the only listed company in Japan specializing in next-generation air mobility, several peers are already trading on New York stock exchanges. This includes Joby Aviation Inc., Archer Aviation Inc., Lilium NV and Vertical Aerospace Ltd.

Joby, which has a market capitalization of more than $3 billion, is set to bring to market what the industry calls eVTOLs, or electric vertical take-off and landing aircraft. These flying taxis are battery-powered and, according to the companies, intended to fly unmanned once regulations allow.

“US-listed air mobility companies have pretty large market capitalizations,” Katano said. “If you consider our business to be of the same kind, I think I can gain understanding from investors for a decent valuation.

ALI Technologies will target a unicorn valuation of $1 billion or more in the long term, Katano added. But the company has yet to decide how best to categorize its vehicle, which will depend on discussions with local regulators where the product is sold.

“We think our planes could be classified differently than existing planes, Katano said. “It doesn’t travel on the ground, but always flies closer to the ground and at lower altitudes.