Xuhang Holdings, Inc. Prices IPO at $4.00 Per Share (SUNH)

Xuhang Holdings, Inc. (SUNH) plans to raise $8 million in an initial public offering on the week of October 7th, IPO Scoop reports. The company will be issuing 2,000,000 shares at a price of $4.00 per share.

In the last 12 months, Xuhang Holdings, Inc. generated $58.5 million in revenue and $7.8 million in net income. The company has a market-cap of $243.2 million.

Craft Capital, WestPark Capital and R.F. Lafferty served as the underwriters for the IPO.

Xuhang Holdings, Inc. provided the following description of their company for its IPO: “We are a holding company incorporated in the Cayman Islands and not a Chinese operating company. As a holding company with no material operations of our own, we conduct all of our operations primarily through our PRC subsidiaries. Our PRC subsidiaries are content-driven marketing service providers that offer a package of integrated marketing solutions across a broad range of distribution channels with a primary focus on new media content marketing. Customers use our PRC subsidiaries’ marketing services to achieve their branding and marketing goals across multiple channels with a primary focus on we-media platforms such as WeChat official accounts (微信公众号), Weibo (微博), Xiaohongshu (小红书), Toutiao (今日头条), Douyin (抖音), Kuaishou (快手), and Baidu Baijiahao (百度百家号). As of Oct. 31, 2022, our PRC subsidiaries had delivered short videos and advertorials that generated over 156 billion views in total. Our PRC subsidiaries’ new media account base comprised 524 self-operated accounts and 491 cooperative accounts, which collectively reached approximately 207 million Internet followers. Customers of our PRC subsidiaries include large Internet platform companies and small- to medium-sized local businesses in all segments of urban life, including catering, entertainment and travel. Currently, our PRC subsidiaries provide two categories of marketing services: (i) new media integrated content marketing services, which rely on creating and distributing relevant, engaging and valuable content in order to attract and retain audiences to promote brands and sell products and services, and (ii) digital advertising services, which emphasize the need to choose better-matched ad distribution channels with the target audience to maximize marketing effectiveness. Our PRC subsidiaries started their business in 2014 with digital advertising services, where they help marketers—typically app developers and operators and advertising agents thereof—optimize their marketing efforts by identifying, engaging and activating target audiences for user acquisition. Our PRC subsidiaries publish advertisements for their customers’ products or services via their digital advertising channels, which consist primarily of mobile apps embedded with their distribution software development kit (the “Xuhang SDK-embedded Apps”). With their analysis and optimization capabilities in advertisement placement, their industry expertise and the distribution channel resources they have accumulated over the years, our PRC subsidiaries are able to provide customers with effective digital advertising services through better matching the products to be advertised with suitable distribution channels. Since 2017, our PRC subsidiaries have launched and expanded their new media integrated marketing services that address the growing demands of marketers for social, entertaining, and trendy marketing content in the new media area. Specifically, our PRC subsidiaries’ new media integrated marketing services are mainly composed of two models—the service-to-business (“S2B”) model and the service-to-platform (“S2P”) model. For the S2B business, our PRC subsidiaries provide customers with a package of new media integrated content marketing service solutions. With respect to the S2P business, our PRC subsidiaries provide online traffic services to large Internet media platforms by generating or directing user traffic to those media platforms through editing and producing captivating short videos from authorized TV dramas, movies, and variety shows and posting such short videos on high-profile media platforms such as Toutiao, Douyin, Xigua Video (西瓜视频), Baidu Baijiahao, Kuaishou, Youku (优酷), Tencent Video (腾讯视频), and iQIYI (爱奇艺).  **Note: Net income and revenue are in U.S. dollars (converted from China’s renminbi) for the 12 months that ended Dec. 31, 2023. (Note: Xuhang Holdings Ltd. has named Craft Capital and R.F. Lafferty as joint book-runners, to work with WestPark Capital, according to its F-1/A filings. Orientert XYZ Securities is no longer involved as a joint book-runner of Xuhang Holdings’ IPO, the filings show.)  (Note: Xuhang Holdings Ltd. cut its small-cap IPO’s size to 2.0 million shares – down from 2.5 million shares – and kept the assumed IPO price at $4.00 – to raise $8.0 million, according to an F-1/A filing dated Sept. 12, 2024. Background: Xuhang Holdings cut its small-cap IPO’s size to 2.5 million shares – down from 2.75 million shares – and kept the assumed IPO price at $4.00 – to raise $10.0 million, according to an F-1/A filing dated June 28, 2024. In that same filing, Xuhang Holdings disclosed that it has named WestPark Capital and Orientiert XYZ as its joint book-runners to replace Univest Securities. ) (Background: Xuhang Holdings Ltd. disclosed the terms for its small-cap IPO – 2.75 million shares at $4.00 to raise $11.0 million – in an F-1/A filing on Feb. 29, 2024. Background: Xuhang Holdings Ltd. filed its F-1 on March 31, 2023. The company submitted confidential IPO documents to the SEC on Sept. 27, 2022.)   “.

Xuhang Holdings, Inc. was founded in 2014 and has 401 employees. The company is located at Building 2, Shangtanghe 198 Cultural and Creative Park, 198 Shenban Road Gongshu District, Hangzhou City, Zhejiang Province The People’s Republic of China, 310000 and can be reached via phone at +86-0571-88583100 or on the web at http://www.sunhighgroup.com/.