May Lichen China (LICN) be the following IPO wunderkind?

  • Lichen China is scheduled to IPO on the Nasdaq on September 12.
  • LICN shares can be listed at $4.
  • Lichen China is concerned in tax prepartion and monetary advising.


Lichen China Restricted (LICN) is a Chinese language tax preparation and monetary advisory that’s scheduled to IPO on Monday, September 12. Primarily based in Jinjiang, the corporate plans to promote its shares on the Nasdaq at a beginning value of $4 every. 

Usually, a small IPO like this could not be all that fascinating. Lichen is simply promoting $25 million price of shares, and the tax and monetary recommendation trade is fairly staid. Nevertheless, a rash of small-cap Chinese language shares have had huge IPO spikes this yr which will give merchants extra curiosity in Lichen.

In August Addentax Group (ATXG) soared greater than 13,000% on its debut, and solely every week earlier Jianzhi Schooling (JZ) did 3,000%. Earlier in the summertime the shadowy monetary agency AMTD Digital (HKD) from Hong Kong famously shot up 32,000% over the course of 1 month. Most of those corporations all had one factor in widespread – small floats. This lack of provide allowed retail merchants and others to create a shopping for frenzy.

Lichen China IPO

Lichen China shares some similarities with its share value hovering brethren. Like a lot of these corporations, it’s carefully held. CEO and chairman Ya Li controls 87% of the corporate’s voting rights by his class B shares.

As a carefully held firm, nonetheless, Lichen China has much more key particular person threat than a standard firm. This may be seen in Lichen’s F-1 submitting with the Securities & Trade Fee (SEC).

“Lichen China Restricted is permitted to elect to depend on sure exemptions from company governance guidelines. Lichen China Restricted doesn’t plan to depend on these exemptions, however could elect to take action after finishing this providing,” the submitting reads. 

By its underwriters, Lichen is promoting 6.25 million shares at $4 every. The whole variety of class A shares can be 19.75 million post-IPO. This might, nonetheless, develop to twenty,687,500 if the underwriter decides to train their over-allotment proper.

The F-1 says that 30% of the proceeds can be used to develop the corporate’s monetary and tax providers, 30% can be used for working capital, 20% is for enhancing model recognition by advertising, and 20% will go towards software program analysis & growth.

Supply: LICN F-1 submitting

Supply hyperlink