Tensions between China and the United States continue because of an ongoing trade war between the two countries, the supply chain disruptions experienced by many U.S. companies when the COVID-19 pandemic went global, and other issues.
But the geopolitical and business climate is not keeping one Chinese B2B marketplace operator from using the U.S. stock market to raise cash and go public.
Investing in ecommerce and marketing
Car House Holding Co.—a Guangdong, China-based operator of a B2B marketplace for automotive parts and a web retailer of related products such as auto perfume and air fresheners—has filed an initial public offering in U.S. on the NASDAQ market.
The company, which has been in business since 2004, looks to sell as many as 3.9 million shares at a price range of $6.50 to $7.50 and raise $27 million in the process.
Car House will use the proceeds for enhancing data analysis and the operational capacity of its ecommerce platform; for marketing, upgrading its manufacturing facility and equipment; and for general administration and working capital.
The Car House IPO does not say if the company plans to use any many of the money raised to expand internationally, including in the U.S. But Car House does have U.S. supplier and ecommerce ties.
P&G and thousands of merchants
The company works with thousands of domestic and international merchants. That merchant base includes U.S. companies with operations in China, such as Procter & Gamble.
Car House says its B2B marketplace is growing. Approximately 3,100 third-party domestic and international merchants are selling about 210,000 types of automotive products on the Car House marketplace platform, the company says. For the fiscal year ended June 30, gross merchandise volume grew year over year by 29.7% to $83 million from $64 million in fiscal 2019.
About 180,000 wholesale customers have registered to use the Car House ecommerce platform and mobile app, including auto product retailers, car dealers, commercial car care shops, professional detailing businesses and consumers. Current inventory is about 200,000 products, according to the Car House IPO filing with the U.S. Securities and Exchange Commission.
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