Baosheng Media Group Holdings Limited, a China-based online marketing solution provider, plans to raise up to $30 million by offering 5 million shares at a price range of $5 to $6. The ordinary shares will be listed on the Nasdaq Global Market and are expected to commence trading on February 8th, 2021 under the ticker symbol “BAOS”.
In addition, Baosheng has granted the underwriter, Univest Securities, a 45-day option to purchase up to an additional 750,000 ordinary shares at the public offering price, less underwriting discounts.
Based in Beijing, Baosheng provides marketing solutions, including online marketing strategies, advertising optimization, and delivers online ads such as search ads, in-feed ads, mobile app ads, and social media marketing ads.
According to the Frost and Sullivan Report, Baosheng ranked fifth among independent online advertising service providers in China in 2018, and fourth among independent online advertising service providers by gross revenue generated through searching engine ads.
Based on the company’s SEC filing, among its clients are search engine Sogou (NYSE: SOGO) and Tencent-backed livestreaming platform Kuaishou, who sets to go public in Hong Kong this Friday. Its official website also lists Asia’s top travel booking platform Trip.com Group Ltd (Nasdaq: TCOM) , Alibaba’s e-commerce platform Taobao, as well as TikTok.
For 2019, Baosheng reported $17.8 million in revenues, up 10% year-over-year. Net income was $11.2 million compared with $9.2 million in 2018. However, due to the COVID-19 pandemic, the total revenues decreased by 10.6%, from $10.96 million for the six months ended June 30, 2019, to $9.80 million for the six months ended June 30, 2020.
Founded in 2014, their business has grown rapidly from a start-up online marketing agency to a multi-channel online marketing solution provider. The IPO would be a new milestone for the company to capture the opportunities offered by the continued rapid growth of the online marketing industry in China.
