Molecular Data Sets Terms for $80.5 Million IPO in New York

China’s largest chemical e-commerce platform seeks to offer 11.5 million ADSs on the Nasdaq Global Select Market.

Anthony Russo
    Dec 20, 2019 6:45 PM  PT
Molecular Data Sets Terms for $80.5 Million IPO in New York
author: Anthony Russo   

China's largest online chemical retailer, Molecular Data Inc., announced on Friday the terms of its expected initial public offering in New York.

The Shanghai-based company said in a filing today with the U.S. Securities and Exchange Commission that it seeks to sell 11.5 million American depositary shares at the price of between $5 to $7 apiece.

At the top end of its expected range, Molecular Data would raise $80.5 million, up from the $70 million it targeted in an earlier filing.

The underwriters on Molecular Data's IPO are AMTD Global Markets Ltd., Fosun Hani Securities Ltd., Tiger Brokers (NZ) Ltd., Guotai Junan Securities (Hong Kong) Ltd. and Boustead Securities LLC. The firms may purchase up to an additional 1.7 million ADSs, according to the filing.

Established 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. In 2014, the company began providing warehousing, financial and logistics solutions on top of its chemical e-commerce it was offering, according to its prospectus.

The company also manages an encyclopedia of commercially available chemicals in China.

In the nine months through September, Molecular Data said its revenue reached $1.3 billion, up 50% year-over-year. The company has yet to turn profitable, posting net loss of $18.6 million in the period compared with $12.8 million a year ago.

By 2023, the global market size of the chemical industry is forecasted to reach 6.4 million, at a compound annual growth rate (CAGR) of 3%, Molecular Data said in the filing.

Molecular Data has applied to list its ADSs on the Nasdaq Global Select Market under the symbol "MKD". The official public trade date has yet to be announced.