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Real Estate Service Provider MDJM Ltd. Set to Trade on Tuesday

The company, under ticker symbol “MDJH,” has completed its $6.3 million IPO, selling 1.26 million shares at $5 per share.

CapitalWatch Staff
    Jan 04, 2019 5:01 PM  PT
Real Estate Service Provider MDJM Ltd. Set to Trade on Tuesday

MDJM Ltd., a real estate services company that filed for an initial public offering in August, said today that it expected its shares to begin trading on the Nasdaq Capital Market on Tuesday. 

The company, under ticker symbol "MDJH," has completed its $6.3 million IPO, selling 1.26 million shares at $5 per share, it said. Network 1 Financial Securities Inc. acted as sole underwriter for the offering. 

Based in Tianjin, MDJM provides consulting, training, marketing, planning, and sales to developers and design institutes, as well as urban planning and infrastructure bureaus in China. 

Founded in 2002, the company operates through Tianjin Mingda Jiahe Real Estate Co. Ltd. While its base and primary target market is Tianjin, which ranked China's fifth-largest city based on GDP per capita in 2017, MDJM said it has been expanding to other first- and second-tier cities, including Chengdu, Suzhou, and Yangzhou, since 2014. 

In its prospectus, MDJM said it has sold approximately 880,000 square miles of properties with a value totaling approximately $2 billion from 2014 to 2017. In addition to its service fees, the company charges commission fees ranging from 0.5 to 1.7 percent of a sale. As of May 23, it employed 84 real estate professionals and said it retains sales associates as needed for its projects. 

For the full year 2017, MDJM reported revenue of $5.5 million, a 4 percent increase from 2016. Its operating expenses jumped 20 percent year-over-year to $5.3 million in 2017. Net income last year was $1.2 million compared with $996,550 posted for 2016. The company had $3.1 million in cash and cash equivalents as of Dec. 31. 

MDJM has said it intends to use the proceeds of the stock sale in New York for working capital and general corporate purposes. 

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