Molecular Data, an Online Chemical Marketplace, Seeks U.S. IPO of $70 Million

The company, which provides services in the chemicals sector, has applied for an initial public offering on the Nasdaq.

CapitalWatch Staff
    Dec 08, 2019 6:00 AM  PT
Molecular Data, an Online Chemical Marketplace, Seeks U.S. IPO of $70 Million
author: CapitalWatch Staff   

Molecular Data Inc. is the latest in a slew of Chinese online tech-powered platforms to have filed for a U.S. listing, seeking to raise up to $70 million.

A Shanghai company, Molecular Data operates a chemical e-commerce platform and delivers financial and logistics solutions to clients globally. Citing market research by analyst Frost & Sullivan, the company said in its preliminary prospectus that, for the past two years, it has held the top position among rivals in China in terms of GMV.

Molecular Data stated in its filing with the U.S. Securities and Exchange Commission on Friday, "Built upon our core knowledge engine and supported by our artificial intelligence (AI) engine and software-as-a-service (SaaS) suite, we offer e-commerce solutions, financial solutions, and warehousing and logistics solutions to all participants across the chemical value chain."

The company is relying on the growth of China's chemical e-commerce market, which it said is expected to rise at a compound annual growth rate (CAGR) of 29% from 2018 to 2023, reaching online penetration rate of 2.2% in four years.

Founded in 2013, Molecular Data operates two websites – for the Chinese and the international markets – as well as Moku Data Weixin account and Chemical Community App. It also manages an encyclopedia of commercially available chemicals in China. It said it has established connections with Google (Nasdaq: GOOGL) and Baidu Inc. (Nasdaq: BIDU) for marketing purposes.

In its filing, Molecular Data said it intends to use the proceeds from its IPO for logistics and warehousing, to boost its technology and personnel capabilities, for strategic acquisition and cross-border investment and use the rest for marketing and general corporate purposes.

Underwriting the deal in New York are AMTD Global Markets Ltd., Fosun Hani Securities Ltd. and Boustead Securities LLC.

The exact amount of the offering and other terms have yet to be determined. Molecular Data said it will apply to list as "MKD" on the Nasdaq Stock Market.