Goxus, a Design and Development Company, Files for IPO in New York

The company seeks to raise up to $15 million on the Nasdaq to invest in brand recognition, recruitment and R&D.

Author: Anna Vodopyanova   

China's Goxus Inc. has filed to sell 1.5 million of its ordinary shares in an initial public offering on the Nasdaq Capital Market.

Based in Beijing, Goxus provides urban-rural design and development consulting in China.

In its prospectus filed with the U.S. Securities and Exchange Commission on Tuesday, the company said it anticipates the IPO price range at $8 to $10 per share. At the top end, Goxus would raise $15 million, or $17.3 million should oversubscription occur.

The sole underwriter on the offering is Network 1 Financial Securities Inc.

Operating since 2010, Goxus said it has managed the design and construction of more than 100 projects in China, including villages, towns, theme parks, neighborhoods, shopping malls and schools. The majority of those projects were with construction companies working on government contracts, according to the filing.

Goxus cited the growing number of China's population (expected to reach 1.41 billion by 2024) and "recent economic expansion" as factors contributing to the rising urbanization. Goxus also cited an independent market analytics firm, Frost & Sullivan, saying that China's urbanization rate is expected to reach 66.5% in 2023.

In addition, the country's authorities have issued several directives on accelerating the development of rural areas into towns and cities, the company said, and the trend is expected to continue.

For the half-year through September, Goxus reported revenue of $24.9 million on income of $4.1 million. In the year ended March 2019, the company generated $47.2 million in revenue, up 69% year-over-year. Net income was $7.1 million, nearly flat compared with the twelve months through March 2018.

Goxus said that it differs from its competitors as follows: "Rather than focusing primarily on the functional and aesthetic aspects of a design, our approach strives to bring together what is desirable from a human point of view with what is ecologically feasible and economically sustainable in all our designs."

The proceeds from the IPO in New York will fund marketing and brand enhancement, resource management software development, research and development and personnel training and recruitment, Goxus said in its filing.

The company has reserved "GOXS" as its ticker symbol.

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