HiTek Global Lowers IPO to $10 Million on Nasdaq
The Chinese IT services provider is seeking to sell 2.5 million shares at $4 apiece under the symbol “HKIT.”
HiTek Global Inc., a Chinese provider of IT services seeking an initial public offering in New York, has downsized its maximum target to $10 million.
The company, based in Xiamen City, said in an updated filing it is seek to sell 2.5 million of Class A shares and will offer 375,000 additional shares to underwriters for over-subscription. That would price its American depositary shares at $4 apiece.
In its initial filing with the U.S. Securities and Exchange Commission in November, HiTek said it sought to raise as much as $23 million in its IPO.
HiTek focuses on providing information technology (IT) services to small- and medium-sized businesses, and selling hardware and software to large corporations.
The company reported revenue last year of $6.9 million, about level from the year before, and $3.5 million for the first six months of this year. Thanks to substantially lower operating expenses, HiTek said it earned $2.1 million last year compared with just $380,021 the year before. The company reported net income of $1.3 million in this year's first half through June.
The company, seeking to trade under the symbol "HKIT" on the Nasdaq Capital Market, said it plans to use the proceeds from its IPO to help fund research and development, recruit additional employees, enhance its IT system, and for general working capital.
Boustead Securities is listed as underwriter for the deal.
The company does not appear to be connected with a separate Hitek Global, also in the IT business, with offices in Hyderabad, India, and Fort Wayne, Indiana, among other places.