Guangzhou, 27th April: Guangzhou-based B2B e-commerce platform Global Market Group (GMC) is reportedly delaying and scaling back its plans for an initial public offering (IPO) on the New York Stock Exchange (NYSE). This is the second announced change of plans in the past month.
Under the original plan, announced on 16th March, the company would raise US$132 million by selling 11 million shares at US$11 to US$13 per share. The latest revision sees the IPO scaled down to just two million shares priced at US$6 to US$7 resulting in proceeds of US$13 million.
However, 1.35 million of those shares will reportedly be sold directly from the holdings of company founder and CEO David Ling. As a result, GMC will only sell net shares of 650,000 raising US$4.2 million. GMC’s management states that the company will receive just US$1 million after deducting the cost of the underwriting and other expenses.
Source: Business Strategies Group Hong Kong www.bsgasia.com