- Qilian International (QLI) could be the first Chinese company to take its shares to Nasdaq Global Market in 2021.
- In 2020, the number of Chinese companies’ listings in the U.S. reached a six-year high.
- QLI is expected to excite investors and make its debut as the first Chinese IPO on the Nasdaq in 2021.
Qilian International Holding Group Limited (QLI) plans to raise around $35 million with an initial public offering on the Nasdaq under the ticker QLI as early as next week, according to people familiar with the deal. This could be the first U.S. listed Chinese IPO in 2021.
The company is offering 5,000,000 of its American depositary shares (“ADSs”) at an indicative range between $5 to $7 per share, for a total offering size up to $40.25 million, assuming the underwriters exercise their option to purchase up to an aggregate of 750,000 additional ADSs.
With over 50 years of history, Qilian International is a pharmaceutical and chemical company based in China that focuses on the development, manufacture, marketing, and sale of licorice products, oxytetracycline and other active pharmaceutical ingredients, traditional Chinese medicine derivatives (“TCMD”) product, heparin sodium products, sausage casings, and organic fertilizers.
According to Qilian International’s SEC filing, the company made $5.17 million in net income on revenues of $50.37 million for the years ended September 30, 2018, and made $5.33 million in net income on revenues of $46.10 million for the years ended September 30, 2019.
In 2020, Chinese companies’ listings in the U.S. reached a six-year high since 2014. Major Chinese IPOs in the U.S. this year included financial technology company Lufax and online real estate platform Ke, both of which ranked among the ten largest public offerings in America in 2020.
The recent listings and their stock performance were nothing but extremely crazy. Oriental Culture (OCG) stock skyrocketed 83.25% within two days since its IPO on December 15, 2020. Wunong Net Technology (WNW) stock was up 2300% within the first three trading days since publicist debut on Nasdaq. Being the first U.S. IPO by a Chinese company this year, Qilian International is well expected to excite public investors and make its debut as the first Chinese IPO carrying over the momentum since late 2020.
