Powerbridge Technologies, Solutions Provider in Global Trade, Files for $15 Million U.S. IPO
The company provides system and software services to corporate and government clients affiliated with global trade. It also plans to launch blockchain services during this quarter.
Powerbridge Technologies Co. Ltd., a provider of software applications and technology solutions in China, seeks to raise $15 million in an initial public offering on Wall Street
The company, located in Zhuhai, serves primarily corporate and government clients in China who are engaged in global trade. Formed in 1997, Powerbridge aims to "make global trade easier by empowering all players in the ecosystem," according to its prospectus filed Friday with the U.S. Securities and Exchange Commission.
"Global trade involves complicated and cumbersome processing, manual handling of voluminous documents, extended and complex cross-organization workflows as well as a great number of business and government players in the global trade ecosystem," the company said.
With its systems solutions and software services, Powerbridge said it helps clients across various industries and regulatory agencies simplify the complexities of trade operations, logistics, and compliance. It added that it is currently developing blockchain services and hopes to launch that capability in the first quarter.
The majority of its revenue, about 80 percent as of recent figures, is generated from application development services. For the six months through June, the company reported revenue of $7.9 million, up 20 percent year-over-year. Meanwhile, its income declined to $1.3 million from $1.5 million from the year before, the company said.
During the first six months of 2018, Powerbridge said it generated revenue from 739 customers, of which 257 were international trade businesses and manufacturers, 67 were government agencies and authorities, and 415 were logistics and other service providers. For the full year 2017, it had 1,633 clients.
Citing a report by consultancy iResearch, the company said in its filing that the traditional enterprise software market in China is expected to grow to $5.2 billion in 2020 from $4.4 billion in 2017, while the SaaS (software-as-a-service) application market is expected to reach $7.3 billion in two years.
As for the blockchain market size, by 2025 it is estimated to reach $16.3 billion on the global scale, according to a report by Bekryl Market Analysts, Powerbridge said.
The technology solutions provider said it expects to use the proceeds of its offering in New York for research and development, sales and marketing, strategic alliances and acquisitions, and working capital, as well as general corporate purposes.
Powerbridge said it had 11.5 million ordinary shares outstanding, with an authorized share capital of 50 million. Upon the completion of the IPO, its chief executive, Ban Lor, and chief financial officer, Stewart Lor, will remain the controlling shareholders of the company.
Underwriters on the offering, Maxim Group LLC and The Benchmark Company LLC, may acquire up to an additional 15 percent of Powerbridge's shares for over-allotment.
The company has applied to be listed on the Nasdaq Capital Market as "PBTS."