Traditional Chinese sausage brand Rongye Food lowers the size of its US IPO, aiming to raise $9 million
Rongye Food plans to downsize its US IPO to $9 million, a 20% reduction from the original plan. The company will issue 2 million American Depositary Shares (ADS) at a price of $4-5 per share. Rongye Food is mainly engaged in the processing and sales of pickled meat products and frozen foods, with sales primarily conducted through offline channels in mainland China. The company has a long history of development, and financial data shows that as of June 30, 2024, its revenue is approximately $137 million
According to the financial news app Zhitong Finance, Wing Yip Food Holdings Group, a company in China engaged in the processing and sale of meat products, has reduced the proposed transaction size for its initial public offering (IPO). The company is now planning to issue 2 million American Depositary Shares (ADS) at a price of $4-5 per share to raise $9 million, a 20% decrease from the previous planned financing amount. Previously, the company had planned to issue 2.5 million ADS at the same price.
Through its operating subsidiaries in mainland China, Wing Yip Food mainly engages in the processing, sale, and distribution of cured meat products, snacks, and frozen meat products. Currently, Wing Yip Food's products are mainly marketed and sold in 18 provinces in mainland China through 7 self-operated stores, 72 retail stores and supermarkets, and 7 e-commerce platforms (including one company-owned platform).
It is worth noting that all 7 self-operated stores of Wing Yip Food are located in Guangdong Province. Despite the company's presence in e-commerce channels, the revenue from e-commerce platforms for Wing Yip Food in the first half of 2021 to 2023 accounted for approximately 2.21%, 2.24%, and 1.23% respectively. Clearly, the company's sales channels are mainly offline.
Wing Yip Food's development history can be traced back to 1915, when it mainly operated in the processing and sale of cured sausages. Since 2010, Wing Yip Food has accelerated its business expansion. In addition to the "Wing Yip" brand of cured meat, it has expanded into new product lines, developed snack brands "Jiangwang" and "Kuangke," and entered the frozen food sector, forming a product matrix of traditional cured meats, snacks, and frozen foods, becoming a modern food enterprise with a diverse product range.
In terms of financial data, the total sales for the 12 months ending June 30, 2024, amounted to approximately $137 million. The company plans to list on the Nasdaq stock market under the ticker symbol "WYHG"