Hongli Group, a cold roll formed steel profile manufacturer in China, lowered the proposed deal size for its upcoming IPO on Friday.
The Shandong, China-based company now plans to raise $13 million by offering 2.5 million shares at a price range of $4 to $6. The company had originally filed to offer 5 million shares at the same range before increasing the offering to 5.5 million shares this past September, and most recently lowering the offering to 4 million shares in December. At the revised terms, Hongli Group will raise 38% less in proceeds than previously anticipated.
Hongli Group is an offshore holding company conducting its operations in China through Hongli Shandong, a variable interest entity, and its subsidiaries. Hongli Shandong is a leading cold roll formed steel profile manufacturer in China. The entity's main business operation focuses on the design, production, deep processing, and sales of custom-made profile for machinery and equipment in a variety of sectors including, but not limited to, the mining and excavation, construction, agriculture, and transportation industries.
Hongli Group was founded in 1999 and booked $22 million in revenue for the 12 months ended June 30, 2022. It plans to list on the Nasdaq under the symbol HLP. EF Hutton is the sole bookrunner on the deal.
