News ReleaseCommercial Bakery With Its Feet In Two Leading Global Markets Gets Ready For NASDAQ IPO
Benzinga
By David Willey, Benzinga Chanson International Holding, a company that manufactures and sells baked goods, beverages and seasonable products through chain stores in the United States and China, is gearing up for an initial public offering (IPO) in the U.S. The company anticipates IPOing with 3 million Class A ordinary shares at a public offering price of $4 per share. The company will list on NASDAQ under the ticker CHSN and expects to commence trading on March 29, 2023. Chanson Holdings expects to raise approximately $15 million in aggregate gross proceeds from the IPO, before expenses. It expects the offering to close on or around March 31, 2023, provided there is satisfaction of the customary closing conditions. Money raised by the IPO will go toward opening new stores in the U.S. The company has positioned itself at the heart of the baked goods market, with bakeries in both the US and China. The global bakery product market size was $497.5 billion in 2022 and is expected to be $625.9 billion by 2028, with a compound annual growth rate (CAGR) of 3.7% during the forecast period. The U.S. and the Chinese retail baked goods markets were the largest in the sector, being worth $67 billion and $34 billion respectively in 2020, while the Chinese market is forecasted to jump 53% to $53 billion by 2025. IPO To Further Strengthen International Position Though Chanson International is headquartered in the Cayman Islands, its bakeries are located in the U.S. and China, with 33 stores for its baked goods across China, as well as two in New York City. The company anticipates opening seven new stores in China, as well as eight new US stores this year. The company expects to have 50 stores in total by this year. Funds raised by the IPO will go towards opening stores in the US. According to their investor presentation, the company made $8.5 million in revenue and $4.1 million in profit in the first half of 2022, for a gross margin of 48.5%. The company manufactures and distributes a range of bakery products and savory food as well as seasonal products and in-house beverages that combined make up its over 700 products. Some stores also include eat-in services, offering 131 menu items and bakery products. Chanson International has sophisticated distribution channels in both China and the US, including digital platforms, third-party platforms and delivery partners. In China, it has an added level of product stickiness through its membership card initiative, and as of December 2022 the company had around 582,000 members. Other companies in the bakery market include Hostess Brands (NASDAQ: TNWK) and Ephiphany Cafe, a subsidiary of Starfleet Innotech, Inc. (OTC: SFIO). This article was originally published on Benzinga here. This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice. Contact Details Benzinga +1 877-440-9464 info@benzinga.com Company Website http://www.benzinga.com
March 31, 2023 09:00 AM Eastern Daylight Time
