Ecmoho Announces Pricing Ahead of IPO on Friday

Ecmoho plans to sell 4.4 million American depositary shares priced between $10 and $12 each in its IPO this week.

Anthony Russo
    Nov 04, 2019 6:30 PM  PT
Ecmoho Announces Pricing Ahead of IPO on Friday
author: Anthony Russo   

China's largest supplements retailer,  Ecmoho Ltd., announced the pricing of its shares ahead of its initial public offering in New York, set for Friday.

The Shanghai-based company said in its latest filing with the U.S. Securities and Exchange Commission that it plans to sell 4.4 million American depositary shares priced between $10 and $12 per ADS. 

At the top of the expected range, Ecmoho would raise $52.8 million, significantly lower than $150 million the company targeted a month ago in a separate filing.

Underwriters on the deal are UBS Securities LLC and China International Capital Corporation Hong Kong Securities Ltd., co-managed by AMTD Global Markets Ltd., Tiger Brokers (NZ) Ltd. and Needham & Company, LLC. Underwriters will have an option to purchase an additional 656,250 ADSs upon the offering, according to the prospectus.

Founded in December 2011, Ecmoho distributes health and wellness products dedicated to personal care and family needs. Through September, the company sourced approximately 5,500 SKU's of health and wellness products from around 40 brand partners. Echmoho sells products on major e-commerce platforms, including Inc. (Nasdaq: JD) and Pinduoduo Inc. (Nasdaq: PDD), according to the filling.

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In 2018, Ecmoho said it was the largest non-medical wellness company in China in terms of revenue, citing research from consultancy Frost & Sullivan.

The company said it intends to use the proceeds from its IPO to boost its workforce and to expand its products and service offerings. It will also use a portion to repay a loan to Techlong International Investments Ltd., as well as for repayment to its subsidiary Shanghai Ecmoho. The rest will supplement general corporate purposes, working capital, potential acquisitions, investments and alliances, according to its statement.

For the six months through June, Ecmoho reported revenue of $151.3 million, more than double from a year ago. Net income attributable to Ecmoho increased by 64% year-over-year to $1.8 million in the first half-year.

Ecmoho has applied to list its ADSs on the Nasdaq Global Market under the symbol "MOHO" and is set to go public on Nov. 8.