ZKH Group, a Chinese B2B procurement platform for industrial supplies, announced terms for its IPO on Friday.
The Shanghai, China-based company plans to raise $66 million by offering 4 million ADSs at a price range of $15.50 to $17.50. Existing shareholders intend to purchase $15 million worth of ADSs in the offering (23% of the deal). At the midpoint of the proposed range, ZKH Group would command a fully diluted market value of $2.8 billion. The IPO float is just 2.5% of basic shares outstanding.
ZKH Group states that it is a leading MRO (materials for maintenance, repair, and operations) procurement service platform in China, providing one-stop MRO procurement and management services, as well as digital and fulfillment solutions along the industry value chain. The company operates two platforms, ZKH platform and GBB platform. On the ZKH platform, the company operates both product sales and marketplace model and mainly serves enterprise customers. The GBB platform primarily operates through a product sales model and serves micro businesses. ZKH Group served over 64,000 customers in the 12 months ended 9/30/23, with product offerings spanning 17.2 million SKUs and all major MRO product lines, and grew GMV at a 37% CAGR from 2020 to 2022.
ZKH Group was founded in 1998 and booked $1.2 billion in revenue for the 12 months ended September 30, 2023. It plans to list on the NYSE under the symbol ZKH. Deutsche Bank, China Renaissance, and CICC are the joint bookrunners on the deal.
