Ruhnn, a KOL Company, Sets Price Range for Next Week's IPO

The company, backed by Alibaba, has lowered its proposed offering to up to $135 million from the $200 million it targeted in an earlier filing.

Author: Anna Vodopyanova   

Ruhnn Holding Ltd., China's largest key opinion leader (KOL) facilitator, has downsized its target to $135 million for its expected float on the Nasdaq exchange on April 3.

The company, backed by e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA), updated its prospectus filed with the U.S. Securities and Exchange Commission, saying it seeks to sell up to 10 million American depositary shares in its initial public offering. It has also set a price range at $11.50 to $13.50 per share, which brought the offering down from the $200 million Ruhnn targeted in an earlier filing.

Based in Hangzhou, Ruhnn creates networks on social media for influencers in fashion, culture, entertainment, and gaming to connect them with fans and businesses in brands, retailers, designers, manufacturers, and suppliers.

For the fiscal year ended March 31, 2018, the company reported revenue from product sales of $132.7 million, up 59 percent year-over-year. For the first nine months of fiscal year 2019, its revenue was $109.9 million, representing a 4 percent rise. Revenue from services quintupled to $5.1 million in fiscal 2018 and has more than tripled to $14.6 million in the nine months through December. It had a net loss of $13.1 million in the fiscal year 2018 and $8.4 million in losses in the first three quarters of fiscal 2019.

The funds from the IPO will be used for the pursuit of additional monetization channels and strategic investments, identifying and training KOLs, technology, and general corporate purposes, according to the prospectus.

The company is set to float on the Nasdaq Global Market under the symbol "RUHN" on Wednesday next week.

Underwriting the offering are Citigroup Global Markets Inc. and UBS Securities LLC.