A year after first filing for IPO, UTime Ltd., a Chinese budget phone maker, was set to lift off Thursday on the Nasdaq under the ticker symbol “UTME.”
But apparently, that was an April Fools' Day joke. Before midday, the company was taken off Nasdaq's planned IPO calendar.
The company has not announced the pricing of its shares, expected to be in the range of $4 to $5. UTime has offered 3.75 million shares, targeting to raise up to $18.8 million in its initial public offering.
Based in Shenzhen, UTime sells cost-effective mobile devices to consumers globally, including the United States, India, Brazil, and some countries in South Asia, Africa, and Europe. It has subsidiaries operating in Hong Kong and India. The company also provides manufacturing services to other makers of electronics.
It first publicly filed for a U.S. listing in March 2020. This time, however, its updated financial data shows an upturn. In the six months through September, UTime booked $26.3 million in revenue, nearly doubled from the same period of 2019. The company also turned up profit in the six months, posting nearly 7 million yuan ($1 million) in income in contrast to losses of 9.8 million yuan.
That’s a significant improvement from the declining revenues and mounting losses reported for the preceding periods, though UTime noted in the prospectus that its business was negatively impacted by the Covid-19 outbreak, especially, the sales and marketing segment in India.
It also said some of its shipments were delayed due to nationwide lockdowns, though none of the orders had been cancelled. As of the date of the prospectus, $1.2 million new orders were still delayed. “We expect that those orders will begin to recover in March 2021,” UTime said.
The company plans to use the IPO capital to grow its U.S. branch, expand global sales and distribution teams, increase promotions, launch 4G feature phones and develop Bluetooth glasses, according to the prospectus.
Boustead Securities, LLC and Brilliant Norton Securities Co. Ltd. are securing the deal on the Nasdaq.