Oriental Culture, an Art Trading Platform, Files for $10 Million IPO

The Chinese online platform for collectibles and artwork to list in the U.S. under the symbol "DFWH."

Yaning Ying
    Nov 13, 2019 1:30 PM  PT
Oriental Culture, an Art Trading Platform, Files for $10 Million IPO
author: Yaning Ying   

Oriental Culture Holding Ltd., a collectibles trading platform in China, seeks to raise up to $10 million by offering 2.5 million ordinary shares at $4 in an initial public offering in New York.

Oriental Culture is a Nanjing, China-based company. It provides online and offline services related to art investment education, market information, research, real-time customer support and artwork warehousing services. On its platform, collectors, artists, art dealers and owners can access a larger art trading market so that they can have access to a broader collection or art investor, the company said in its filing with the U.S. Securities and Exchange Commission this week.

According to the company's prospectus, for 2018 and the six months ended June 30, 2019, Oriental Culture reported operating revenue is $5.4 million and $7.9 million, respectively. Reported net income is $2.6 million and $6.3 million, respectively. 

Oriental Culture said its net revenues are comprised of marketing service fee revenue (70.3%), transaction fee revenue (23.6%) and listing service fee revenue (5.1%).

The company operates in China and Hong Kong through Jiangsu Yanggu Culture Development Co. Ltd., China International Assets and Equity of Artworks Exchange Ltd. and HKDAEx Ltd. 

According to the report of "The Art Market 2019" released by Art Basel and UBS in March 2019, sales in the global art market in 2018 reached $67.4 billion, up 6% year-on-year. Sales in the three largest markets (the U.S., the U.K. and China) accounted for 84% of the global market's total value in 2018. Art sales in China have seen the largest advance of any major country over the past ten years, growing more than 130% between 2008 and 2018. 

Oriental Culture said it plans to use the proceeds from its offering in its information technology infrastructure and proprietary software, as well as to develop new businesses. It also aims to promote its brand and services, according to the prospectus.

The company said it plans to list on the Nasdaq Capital Market under the symbol "DFWH."

ViewTrade Securities Inc. is acting as the underwriter on the deal.