Baosheng Media Group Eyes $30 Million IPO in New York
Chinese ads company Baosheng Media Group Holdings Ltd. seeks to sell $30 million of its shares in a New York initial public offering.
Based in Beijing, Baosheng provides marketing solutions, including online marketing strategies, advertising optimization, and delivers online ads such as search ads, in-feed ads, mobile app ads, and social media marketing ads.
According to the company's prospectus, filed Friday, among its clients are search engine Sogou (NYSE: SOGO) and Tencent-backed livestreaming platform Kuaishou. Its official website also lists Asia's top travel booking platform Trip.com Group Ltd (Nasdaq: TCOM) and classifieds platform 58.com (NYSE: WUBA), as well as videosharing giant TikTok and Alibaba's e-commerce platform Taobao.
Citing commissioned research by Frost & Sullivan, Baosheng said it was the fifth-largest independent online ads company in China in 2018, with a market share of 0.21%.
For 2019, Baosheng reported $17.8 million in revenues, up 10% year-over-year. Net income, it said, was $11.2 million compared with $9.2 million in 2018. As of December 2019, Baosheng had $8.1 million in cash and cash equivalents, according to the report.
Baosheng said it intends to use the majority of its IPO capital for expanding its business scale and securing authorized agency status of additional media. It is also planning to build its own network of influencers and to expand its talent pool, as well as for general working capital.
The company hopes to sell 5 million ordinary shares in the price range of $5 to $6 per share on Nasdaq Capital Market .
Univest Securities is underwriting the offering.
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