RedCloud Holdings, which operates a B2B platform for sellers of consumer goods in emerging markets, lowered the proposed deal size for its upcoming IPO on Tuesday. In its latest filing, the company disclosed plans to complete a 1-for-2 reverse stock split prior to the IPO.
The London, UK-based company now plans to raise $22 million by offering 4.4 million shares at a price range of $4 to $6. The company had previously filed to offer 11 million shares at a range of $4 to $6 (split-adjusted 5.5 million shares at $8 to $12). At the midpoint of the range, RedCloud Holdings will raise 60% less in proceeds than previously anticipated.
The company operates the RedCloud platform, which facilitates the trading of everyday consumer supplies of fast-moving consumer goods across business supply chains. Through the platform, the company enables retailers to use data-driven, AI-backed insights to help make faster and easier business-to-business (B2B) purchases and inventory decisions from brands and distributors. RedCloud currently operates its platform in regions that it considers high-growth consumer markets: Argentina, Brazil, Nigeria, and South Africa. As of December 31, 2024, it had approximately 729 distributors, 6,765 brands, 184,713 products, and 33,767 retailers on its platform.
RedCloud Holdings was founded in 2014 and booked $30 million in revenue for the 12 months ended June 30, 2024. It plans to list on the Nasdaq under the symbol RCT. Roth Capital, Clear Street, and Rosenblatt Securities are the joint bookrunners on the deal.
