Shengfeng Development, a Chinese contract logistics services provider, lowered the proposed deal size for its upcoming IPO on Friday.
The Fuzhou, China-based company now plans to raise $14 million by offering 3 million shares at a price range of $4 to $5. The company had previously filed to offer 5 million shares at $5. It originally planned to offer 8 million shares at a range of $4 to $5, before revising the terms in January. At the revised terms, Shengfeng Development will raise 46% less in proceeds than previously anticipated. The IPO float is now just 3.6% of basic shares outstanding.
Shengfeng Development provides contract logistics services in China, focusing on increasing client efficiency and improving management systems with respect to transportation, warehousing, and time management. The company had total transportation volume of approximately 3,500,000 tons in the 1H22.
Shengfeng Development was founded in 2001 and booked $349 million in revenue for the 12 months ended June 30, 2022. It plans to list on the Nasdaq under the symbol SFWL. Univest Securities is the sole bookrunner on the deal.
