China's Car House Updates IPO Terms

The online retailer hopes to raise up to $28.9 million on the Nasdaq.
Capitalwatch StaffJul 28,2020,06:55

Car House Holding Co. Ltd., a Chinese online marketplace for car accessories, has proposed the terms for its initial public offering.

In its updated prospectus filed Friday with the U.S. SEC, Car House said it hopes to sell 3.85 million ordinary shares priced at $6.50 to $7.50 per share on the Nasdaq Capital Market. At the top of the range, the proceeds would amount to $28.9 million. The company first applied for a U.S. IPO in June.

Based in Dongguan, Guangdong province, Car House operates an online marketplace selling automotive parts and air fresheners for cars. It facilitates sales for third-party merchants and sells its own products, including car perfume under the brand Carori.

For the second half of 2019, Car House posted a revenue increase of 34% to $16.8 million, of which 88.4% was generated from product sales, while 11% was generated from commissions and fees paid by merchants, and 0.6% from the auto shop. Net income in the six month period was $1.6 million.

For the 12 months through June 2019, the company had revenue of $31 million, up 27% year-over-year, and income of $4.4 million.

Car House plans to use the proceeds from its IPO "for data analysis and operation capacity improvement of our e-commerce platform, marketing, upgrading automotive product manufacturing plant and equipment and other general and administrative matters."

Underwriting the deal is Network 1 Financial Securities Inc. It will have an option to acquire 577,500 additional ordinary shares of Car House upon the IPO.

Car House expects to become publicly traded under the ticker symbol "CARH."