The IPO market got a much-needed push from the successful listing of some tech companies recently, including semiconductor firm Arm Holdings. More businesses are preparing to enter stock markets this year, but it seems Wall Street will have to wait a little more to see a full-fledged IPO recovery. This week, Armlogi Holding Corp. filed papers with the Securities and Exchange Commission to go public.
The California-based warehousing and logistics service provider is planning to offer two million shares, and has set an offer price in the range of $5 per share to $6 per share. It has applied to list on the Nasdaq stock market under the ticker symbol BTOC. Prime Number Capital LLC is acting as the representative of the underwriters.
The Offering
At the mid-point of the price range, the offering would generate proceeds of around $11 million and value the company at $231 million. The amount will be used mainly for the expansion and development of the business — growing the warehouse network and broadening services in areas like logistics, international ocean freight, and port trucking.
Armlogi, a one-stop shop for warehousing and logistics services, operates six warehouses across the U.S. When it comes to growth strategy, the company looks to take advantage of the ongoing eCommerce boom and the rapid development of supply chain, with a focus on serving merchants who seek to sell their products through international e-commerce platforms.
Road Ahead
As a listed company, the primary challenge facing Armlogi would be competition, both from existing companies like Amazon and eBay as well as new players entering the market for warehousing and logistics activities. The company’s high exposure in the Chinese market – almost every customer is based in that country – makes it vulnerable to issues related to tensions between China and the U.S. government.
In the nine months ended March 31, 2023, Armlogi’s revenues more than doubled to around $87 million. The company reported net income of $8.96 million for the period, compared to a loss of $42,997 in the corresponding period of 2022. The growth mainly reflects expansion of warehouse operational capacities in California and New Jersey.
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