Xuhang Holdings, a Chinese provider of marketing services with a focus on new media content, lowered the proposed deal size for its upcoming IPO on Monday. In its latest filing, the company also replaced its sole bookrunner Univest Securities with WestPark Capital and Orientiert XYZ Securities, and disclosed financials for the year ended December 31, 2023.
The Hangzhou, China-based company now plans to raise $11 million by offering 2.5 million shares at a price range of $4 to $5. The company had most recently filed to offer 2.8 million shares at the same range. At the midpoint, Xuhang Holdings will raise 9% less in proceeds than previously anticipated. The IPO float is just 4.1% of basic shares outstanding.
Leveraging its PRC subsidiaries' expertise in content production and operation, extensive distribution channels, and cross-platform new media account base, Xuhang provides integrated marketing solutions that address customers' marketing needs in the context of the new media era. Customers utilize the company's marketing services to achieve their branding and marketing goals across multiple channels, with a primary focus on we-media platforms such as WeChat, Weibo, and Kuaishou, among others. As of December 31, 2023, the company had delivered short videos and advertorials that generated over 224 billion views in total, and its new media account base comprised 524 self-operated accounts and 180 cooperative accounts.
Xuhang Holdings was founded in 2014 and booked $57 million in revenue for the 12 months ended December 31, 2023. It plans to list on the Nasdaq under the symbol SUNH. WestPark Capital and Orientiert XYZ Securities are the joint bookrunners on the deal.
