CN Energy Group Inc. prepares to lift off on the Nasdaq Capital Market Friday in an initial public offering worth up to $25 million.
The Hangzhou-based manufacturer of wood-based activated carbon is selling 5 million ordinary shares at $4 to $5 apiece. Network 1 Financial Securities, the sole underwriter on the deal, may acquire an additional 750,000 ordinary shares to cover over-allotments in the IPO.
CN Energy first filed for a U.S. offering in July 2020 and is now counting down to the opening bell. After all the woes, now the time is opportune for Chinese listings in the U.S. While Muliang Viagoo (OTC: MULG) failed to list on the expected date on Wednesday, about eight China-based firms have already debuted in New York in 2021 – double from the same time a year ago.
In its updated prospectus dated Jan. 25, CN Energy provided its most recent financial results, saying revenues in the year through September increased 15% to $12.5 million. Net income, according to the report, grew to $2.3 million from $1.7 million in the preceding 12 months.
CN Energy supplies wood-based activated carbon for uses in pharmaceutical manufacturing, industrial manufacturing, water purification, environmental protection, and food and beverage production through its subsidiary, Khingan Forasen. It gets raw materials in the Greater Khingan Range, as well as Inner Mongolia, and operates manufacturing facilities in Tahe County, Heilongjiang Province.
The company also produces biomass electricity generated in the process of producing activated carbon. It supplies the electricity to State Grid Heilongjiang Electric Power Co.
CN Energy said it intends to use 80% of the proceeds from its IPO in New York for the construction of its manufacturing facility in Manzhouli City, which has begun. In addition, CN Energy hopes to boost its R&D and to fund working capital and other general purposes.
CN Energy is expected to become publicly traded on Feb. 5 under the ticker symbol “CNEY.”