Newegg Inc., an e-commerce company focused on computer components and electronics, filed with the SEC on Monday to go public by merging with publicly-traded Lianluo Smart Limited (Nasdaq: LLIT).
In connection with the proposed merger, the company plans to offer $30 million in stock and change its name to Newegg Commerce; it has applied to change its Nasdaq ticker symbol to N. Maxim Group is the sole bookrunner on the deal. Newegg is expected to have a market cap of more than $880 million.
During the six months ended June 30, 2020, Newegg generated net sales of $863 million, gross profit of $125 million, and net income of $19 million.
Lialuo Smart Limited closed Friday at $0.41 per share for a market cap of roughly $20 million; the company provides medical products and components in China, and plans to dispose of these legacy assets to Beijing Fenjin Times Technology Development. Newegg originally filed for a $175 million IPO in September 2009 led by J.P. Morgan, but later withdrew the offering in 2011.
Renaissance Capital will not track the deal and the reverse merger will not be included in our 2020 IPO stats.
