Author: Anna Vodopyanova
A Hong Kong company, Fit Boxx Holdings Ltd., seeks to become publicly traded in New York, targeting to raise up to $13 million in its offering.
It aims to sell 2 million ordinary shares at the price range of $5 to $6.50 per share, according to a filing with the U.S. Securities and Exchange Commission.
WestPark Capital Inc., acting as the underwriter on the deal, may acquire up to an additional 300,000 ordinary shares to cover over-allotments, if any.
Fit Boxx stated its mission is “to improve the quality of people’s lifestyle at home and become one of the leading wellness solutions retailers in Asia.”
Founded in 2009, Fit Boxx sells beauty, fitness and healthcare products in Hong Kong and China. The beauty segment includes categories such as hair removal products and skin treatments, while through its fitness and healthcare line it offers treadmills and other accessories.
The company operates offline stores as well as a digital platform and uses key opinion leaders (KOL) for marketing, Fit Boxx said in its prospectus.
Its future development strategies include obtaining rights for exclusive products from suppliers, delivering tailored customer experience, promotion of its brand, CosmoBoxx, and launching self-branded products, according to the filing.
Fit Boxx wrote, “Our long term growth strategy is to increase total net sales by opening new stores, entering new markets in Asia, adding stores to existing markets, remodeling old stores, and increasing e-commerce sales.”
Meanwhile, the company has seen a weakening of sales this year amid a slowdown in China’s economy.
For the nine months through September, Fit Boxx reported revenue of $25.9 million, a 19% decline year-over-year. Net income in the first three quarters was $3 million compared with $5.9 million in the same period last year. At the same time, its operating costs and expenses grew 11% year-over-year to $9.4 million, according to the prospectus.
On the other hand, last year, the company saw solid results. For 2018, it saw revenue of $37.4 million, up 22% from 2017, on income of $5.8 million.
Fit Boxx said it had cash and cash equivalents of $4.3 million as of Sep. 30.
Among the risks, Fit Boxx listed its reliance on a limited number of suppliers. For the nine months through September, five major suppliers accounted for 98% of the company’s purchases.
The IPO capital will be used to boost its brand recognition in China and Hong Kong, to enhance marketing activities, for research and development and the creation of its own products and for general working capital, Fit Boxx said.
The company expects to become publicly traded on the Nasdaq Capital Market under the ticker symbol “FBOX.”
