Decent Holding, which provides waste water and river treatment services in China, filed on Friday with the SEC to raise up to $6 million in an initial public offering.
The Yantai, China-based company plans to raise $6 million by offering 1.5 million shares at a price range of $4 to $4.50. At the midpoint of the proposed range, Decent Holding would command a fully diluted market value of $70.1 million.
During the six months ended 4/30/2024, revenue decreased 70% to $2 million. Gross margin contracted over nine percentage points to 25%. Adjusted EBITDA swung negative.
Decent holdings offerings include the provision of wastewater treatment (25% of revenue), river water quality management (46%), and the sale of microbial products (28%), which are used for water quality enhancement and pollutant removal. The waste water treatment in China is estimated to be a $21+ billion dollar industry as of 2023.
The Yantai, China-based company was founded in 2011 and booked $4 million in sales for the 12 months ended April 30, 2024. It plans to list on the Nasdaq under the symbol DXST. Craft Capital Management and EF Hutton are the joint bookrunners on the deal.
