Huarui International New Material Ltd. is the latest Chinese company to file for an initial public offering in New York, seeking to raise up to $14.4 million.
Based in Jiangyin, Huarui makes fine finish copper fittings and customized copper busbars for high-conductivities electrical power applications in China.
It offers over 15,000 parts including copper bars, hard connections, soft connections, and aluminum connections in electrical components. Huarui obtains raw materials from a number of copper suppliers in China and makes customized products via a build-to-order to model. It also exports "a small amount" of products to Finland and Czech Republic, according to the prospectus.
For the six months through June 2020, Huarui reported revenue of $11.8 million, down 36% from the same period of 2019. Net income, it said, declined to $231,046 from $864,407. For the full year 2019, the company had revenue of $33.5 million, down 32%, on income of $1.6 million, the filing said.
The IPO would fund the land purchase for a new manufacturing site, a factory of 20,000 square meters. In addition, Huarui plans to increase its factory capacity by adding machining centers and auxiliary equipment, boost its R&D, and to recruit new talent.
The company has applied to sell 2.4 million ordinary shares at $4 to $6 a share. Underwriters may acquire an additional 360,000 shares to cover over-allotments. Univest Securities is securing the deal.
Huarui seeks to become publicly traded on the Nasdaq Capital Market under the symbol "HRDG".