ICZOOM Group, which provides electrical components and services to SMEs in China, lowered the proposed deal size for its upcoming IPO on Friday.
The Shenzhen, China-based company now plans to raise $7 million by offering 1.5 million shares at a price range of $4 to $5. The company had previously filed to offer 3 million shares at the same range, and originally planned to offer 4.4 million shares at a range of $5 to $6 before revising the terms this past September. At the midpoint, ICZOOM Group will raise 50% less in proceeds.
At the revised terms, the company is expected to have a market cap below $50 million at pricing. As a result, ICZOOM Group will be excluded from Renaissance Capital's 2023 IPO stats.
ICZOOM operates an online B2B electronics trading platform primarily for small and medium enterprises in China. Operating as Pai Ming Shenzhen, its website offers semiconductor products like integrated circuits, discretes, and passive components, as well as other electronic components like electromechanical, maintenance, and design tools. The company purchased from 1,012 electronics suppliers and sold to 1,051 customers in the fiscal year ended June 30, 2022.
ICZOOM Group was founded in 2012 and booked $290 million in revenue for the 12 months ended June 30, 2022. It plans to list on the Nasdaq under the symbol IZM. The Benchmark Company is the sole bookrunner on the deal.
