HF Enterprises Inc. is set to lift off in public trading Friday on the Nasdaq Capital Market, raising up to $18.2 million.
The company has holdings in property development, technology, and biohealth, and continues to seek out global businesses for acquisition, incubation, and corporate advisory services.
HF operates primarily through Singapore-listed Alset International Ltd. Alset is currently working on two big real estate projects – a 162-acre subdivision near Houston, Texas, and a 197-acre project in Frederick, Maryland. In the tech segment, HF Enterprises designs applications for enterprise messaging and e-commerce software platforms in the United States and Asia, according to the prospectus.
As to the biohealth business, HF is researching neurological and immune-related diseases, nutritional chemistry to create a natural sugar alternative, research regarding innovative products to slow the spread of disease, and natural foods and supplements.
HF holds a 16.8% stake in Australia-listed Holista CollTech Ltd., which makes natural food ingredients, as well as 13.1% equity interest in U.S.-based biopharma company Vivacitas Oncology Inc.
Based in Bethesda, Maryland, the company operates in the United States, Singapore, Hong Kong, Australia, and South Korea. It says, however, that the vast majority of its revenue is generated in the United States, and will continue to be so.
For the six months through June 2020, HF Enterprises reported $5 million in revenue compared with $17.6 million in the first half-year of 2019. Net loss narrowed to $93,085 from $5.3 million a year ago.
In the full year 2019, HF Enterprises booked $24.3 million in revenue, up 19% year-over-year. Net loss was $8.1 million, the company said.
The new capital will be used to fund possible acquisitions of new companies and additional properties, as well as for working capital and general corporate purposes, according to the filing with the SEC.
HF said about its business philosophy: “We have historically favored businesses that improve an individual’s quality of life or that improve the efficiency of businesses through technology in various industries.”
Further, the prospectus said, HF does not anticipate investing in a business passively, without participation in its management or as adding strategic value to other businesses.
HF Enterprises is headed by Chan Heng Fai, who has served as CEO, director, and private equity investor in over 35 private and public early-stage and growth companies in the United States, Singapore, and other countries.
HF Enterprises is offering 2.6 shares of common stock at the price of $6 to $7 per share. An additional 390,000 shares will be an option for the underwriter to cover over-allotments, if any.
HF Enterprises expects to become traded under the ticker symbol “HFEN” and is scheduled to lift off on Friday, Nov. 13.
WestPark Capital, Inc. is the underwriter on the deal.