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Chinese electrical component provider ICZOOM slashes deal size by 44% ahead of $14 million US IPO

September 9, 2022

ICZOOM Group, which provides electrical components and services to SMEs in China, lowered the proposed deal size for its upcoming IPO on Friday. The company also removed both of its previous underwriters, Prime Number Capital and Shengang Securities, from the deal, and added The Benchmark Company as its sole underwriter. ICZOOM Group completed a 1-for-2 reverse stock split on August 8.

The Shenzhen, 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 4.4 million shares at a range of $5 to $6. At the midpoint of the revised range, ICZOOM Group will raise 44% less in proceeds than previously anticipated and command a market cap of $53 million.

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 629 electronics suppliers and sold to 770 customers in the six months ending December 31, 2021. 

ICZOOM Group was founded in 2012 and booked $292 million in revenue for the 12 months ended December 31, 2021. It plans to list on the Nasdaq under the symbol IZM. The Benchmark Company is the sole bookrunner on the deal.