US Stock IPO Encyclopedia | Dajian Yunchang is in the process of offering shares and is the world's leading B2B platform for bulky commodities

The world's leading B2B platform for bulky goods$GigaCloud Technology (GCT.US)$The terms of the IPO were announced recently. It will be listed on NASDAQ on August 19, EST, under the stock code “GCT”. The company plans to issue 2.45 million Class A common shares. The offering price range is US$10.25-12.25 per share, and the maximum capital raised is US$30.125 million.

Dajian Cloud Warehouse is committed to digitally transforming the traditional large foreign trade model to provide users with full-process services from supply chain docking, cross-border transactions, overseas warehousing and logistics, after-sales delivery, etc., to build a “global home furnishing distribution backbone network”. The self-developed GigaCloud platform is the world's leading cross-border B2B platform for large products.

Business Overview

Dajian Cloud Warehouse provides a digital service system for cross-border transactions and delivery of bulky goods, simplifying the previously complicated trading and delivery procedures for bulky goods, and improving the circulation efficiency of bulky goods. The company's main value services include: massive overseas stock supply, global sales channel expansion, overseas warehousing and logistics delivery, and digital management of the entire process.

The B2B platform independently developed by Dajian Yuncang has built a digital bridge between Asian suppliers and overseas retailers to improve channel connectivity issues. The Dajian Cloud Warehouse platform covers 30 categories of products, mainly furniture, major appliances, indoor fitness equipment, outdoor sports equipment, garden equipment, building materials, bathroom, auto parts, etc.

Dajian Cloud Warehouse has not only built a B2B trading platform for large products, but also independently developed warehousing management and logistics distribution systems for the difficult delivery of cross-border products. At present, Dajian Cloud Warehouse's warehousing and freight has reached a global layout, leading the industry, capable of covering more than 90% of customers in 48 US states, and shortening the average delivery time to 3 days.

Between 2019 and 2021, Dajian Cloud Warehouse's compound growth rate of the number of active third-party suppliers reached 132%, and the compound growth rate of the number of active retailers reached 184.4%. The rapid growth of active users is driving the continued expansion of the company's GMV (total commodity transaction value). Despite factors such as rising cross-border shipping costs and weak US consumption in 2021, the company's GMV maintained rapid growth.

Financial Brief

The company's revenue has grown rapidly in recent years. In the first quarter of 2022, despite being affected by weak US consumption, revenue increased 19.0% year over year to reach US$112 million. The company had an equity incentive fee of 9.681 million US dollars in 2021. If this fee is not taken into account, the 2021 EBITDA is 47.953 million US dollars.

Industry Outlook

The US B2B market is huge, but the penetration rate of B2B e-commerce in the US is only 9%, so there is still plenty of room for improvement. At the same time, as a major consumer of furniture, the US imports 39% of furniture, so the B2B segment of bulky goods has strong potential for growth.

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