Ruhnn Holding Poised to Begin Trading Wednesday on Nasdaq
Ruhnn creates networks on social media for influencers in fashion, culture, entertainment, and gaming to connect them with fans and businesses in brands, retailers, designers, manufacturers, and suppliers.
Ruhnn Holding Ltd., China's largest key opinion leader (KOL) facilitator, is expected to begin trading Wednesday on the Nasdaq Global Market under the symbol "RUHN."
The company, which plans to sell 10 million American depositary shares, has set a price range of $11.50 to $13.50 per share, according to a recent filing with the U.S. Securities and Exchange Commission.
Last week, the company, backed by e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA), brought the offering down from the $200 million Ruhnn targeted in an earlier filing.
Based in Hangzhou, Ruhnn creates networks on social media for influencers in fashion, culture, entertainment, and gaming to connect them with fans and businesses in brands, retailers, designers, manufacturers, and suppliers.
For the fiscal year ended March 31, 2018, the company reported revenue from product sales of $132.7 million, up 59 percent year-over-year. For the first nine months of fiscal year 2019, its revenue was $109.9 million, representing a 4 percent increase.
Revenue from services quintupled to $5.1 million in fiscal 2018 and has more than tripled to $14.6 million in the nine months through December. It had a net loss of $13.1 million in the fiscal year 2018 and $8.4 million in losses in the first three quarters of fiscal 2019.
The funds from the IPO will be used for the pursuit of additional monetization channels and strategic investments, identifying and training KOLs, technology, and general corporate purposes, according to the prospectus.
Underwriting the offering are Citigroup Global Markets Inc. and UBS Securities LLC.